Matchesfashion - Case Update

Mike Ashley's Frasers Group has reached an agreement with Julian Heathcote and Benjamin Dymant of Teneo, the joint administrators of Matchesfashion, to acquire certain IP assets of the luxury e-commerce platform following an extensive marketing process by the joint administrators.

Matchesfashion entered administration in March, less than 3 months after it was acquired by Frasers Group for approximately £52 million in cash. At the time of the administration, Frasers Group released a statement noting that Matches had consistently missed its business plan targets and, notwithstanding support from Frasers (which the administrators’ report reveals was in the range of £33 million), had continued to make material losses. Following a difficult Christmas season, Frasers said it was unwilling to provide further funding and took the decision to put Matches into administration.

Since their appointment, the joint administrators have continued trading the business and conducted a sales process which involved 48 parties total, 16 of whom signed NDAs. Eleven offers were made for the brands and certain assets within the business, which were still being considered by the joint administrators when they filed their proposals.

Under the terms of the transaction, Frasers has acquired certain IP assets only and has granted a licence that allows the joint administrators to sell the stock Matches holds through a period of continued trading for the benefit of the administration.

The joint administrators have been assisted by Bryan Cave Leighton Paisner (legal) and Hilco (agents). Their proposals can be found HERE.