Frasers Group, which acquired Matches for £52 million in December with plans to revive the struggling retailer, has announced its decision to shut down the online luxury marketplace. Just two months after the acquisition, Frasers cited continual misses on business plan targets and significant losses as reasons for Matches going into administration.
In a statement to the London Stock Exchange, Frasers expressed that despite efforts by Matches’s management to stabilise the business, restructuring would require too much change, and the funding requirements were deemed unsustainable by the group.
Matches reported escalating losses over recent years, from £5.9 million in 2020 to £70.9 million in 2023, making a turnaround a challenging endeavour.
The move marks another setback for the online luxury market, following a series of challenges. The acquisition comes amidst Farfetch’s acquisition by South Korean e-commerce giant Coupang and the resignation of founder José Neves, signalling shifts in the luxury e-commerce landscape.
Frasers’ original intent for Matches was to enhance its online luxury profile and initiate a turnaround for the struggling retailer. However, the decision to shutter Matches represents a shift in strategy for the group.
