Shirebrook-based retail giant Frasers Group has put recently acquired luxury fashion retailer MATCHES into administration.
The company said MATCHES has consistently missed its business plan targets and has continued to make material losses.
Frasers Group told the London Stock Exchange: “Whilst MATCHES’ management team has tried to try to find a way to stabilise the business, it has 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.
“In light of this, Frasers has been informed that the directors of MATCHES have taken the decision to put the MATCHES group into administration. Frasers remains committed to the luxury market and its brand partners.”
It comes shortly after Frasers Group bought the business in a £52 million deal. At the time it said the acquisition would be an opportunity to further develop Frasers’ Elevation Strategy and strengthen its luxury offering.
The MATCHES business had been loss making in recent years.