The Frasers Group, led by Mike Ashley, is actively exploring the possibility of acquiring Matches, a high-end online retailer based in London. In-depth negotiations are underway, indicating a potential takeover by Frasers within a short period, and the estimated value of this deal is around £50 million. Such an acquisition could result in substantial losses for Apax Partners, the private equity firm supporting Matches.
Recent reports reveal that Frasers, alongside Next, was among the select entities that submitted acquisition offers for Matches. The luxury e-tailer faced financial challenges earlier in the year, prompting Apax to inject £60 million into the company to cover both equity and debts. In December, there were reports suggesting that Matches was considering a £50 million equity raise as part of its strategic efforts to navigate its financial situation.
The financial difficulties for Matches became more apparent in November when operating losses surged from £37.5 million to £67.2 million for the period up to January 31st. Concurrently, the company experienced a 1.7% decline in revenue, amounting to £380 million for the same period.
Frasers Group has been active in the acquisition space, recently adding premium menswear retailer John Anthony to its portfolio. However, the group had to step back from a potential purchase of German sports retailer SportScheck after its parent company, Signa Holding, filed for insolvency. Despite this setback, Frasers remains optimistic about the possibility of acquiring SportScheck’s business or assets out of administration.
