When Matches collapsed in March 2024, it sent shockwaves throughout the industry that are still being felt to this day. Now, plans are underway to potentially revive the business.
Frasers Group — which bought back the rights to use Matches’s intellectual property for £20 million plus VAT a month after calling in administrators — is understood to be considering a number of options, which could include launching a membership platform under the Matches name. It is currently consulting with brands over the best route forward, sources said. Frasers declined to comment.
Frasers Group has snapped up the Matches name, trademark and database, and is licensing them back to the administrator. Here’s what it means for brands.
Frasers first acquired the loss-making luxury retailer for £52 million in December 2023. At the time, Frasers CEO Michael Murray said he was “confident” of returning it to growth. The group, which is owned by billionaire businessman Mike Ashley (Murray’s father-in-law), has several retailers within its portfolio, including Sports Direct, Evans Cycles and designer fashion retailer Flannels.
Less than three months later, however, Frasers announced that Matches was being put into administration after it had “become clear that too much change would be required to restructure it, and the continued funding requirements would be far in excess of amounts that the group considers to be viable”.
The British owner of brands including Sports Direct and Flannels has acquired the luxury retailer as part of its ongoing ‘elevation strategy’.
Matches employed 531 people at the time of its collapse, according to the latest report from administrator Teneo Financial Advisory, filed at Companies House (the registry of all companies trading in the UK). Some 266 people were made redundant immediately, while the rest of the roles were retained to enable the business to continue trading while Teneo sought a buyer for Matches and liquidated its stock. The business stopped trading in July 2024.
In April, Teneo estimated that more than 540 luxury brands were owed a total of £35.9 million from Matches. Toteme, Gabriela Hearst, Gucci, Burberry and Prada were among the brands owed six-figure sums. By October, following further claims, the total amount owed had risen to around £42.6 million (of which £13.5 million had been settled).
After acquiring the IP assets, Frasers licensed them to Teneo to allow it to continue operating Matches for as long as possible. In the meantime, Teneo continued to seek a buyer, but it said no offer was made that would have paid off Matches’s debts to its secured creditor — Frasers Group — in full. Vogue Business understands a final decision on what to do with the Matches IP is not expected until the end of the year, at the earliest.
With additional reporting by Lucy Maguire.
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