A fashion company now files an unexpected bankruptcy just three months after being acquired and continuously losing money.
Frasers Group is shutting down luxury ecommerce site Matchesfashion, saying in a statement that “continued funding requirements would be far in excess of amounts that the Group considers to be viable.”
As a result, Matches has been put into administration, the UK equivalent of bankruptcy, reports Retail Touch Points.
Since rebranding from Sports Direct International to Frasers Group in 2019, the company has been steadily growing its slate of fashion and lifestyle brands, which now includes Flannels, House of Fraser, Everlast, Amara Living, Gieves & Hawkes and Slazenger, among others.
The company bought digital fashion retailer Misguided in 2022 but sold that company to Shein late last year.
Matches is a UK business but makes most of its money selling overseas, according to the BBC.
The company has an online presence in 176 countries as well as three stores in London.
Frasers Group spent £52 million, or $63 million, to buy Matches in December 2023 as part of its ongoing “elevation strategy” to boost the luxury factor in its portfolio.
Since the acquisition, however, Frasers said in a statement that the business continued to miss targets and lose money.
“Whilst Matches’ management team has tried to try to find a way to stabilize the business, it has become clear that too much change would be required to restructure it.”
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Also Read: A Massive Retailer Now Closes And Begins Liquidation Sale
Other Economy News Today
A popular clothing store makes an unexpected closure in California after 60 years in business, sources report.
Popular clothing chain The North Face is set to leave the city of its birth nearly 60 years after it first appeared, reports The-Sun.
The outdoor clothing chain emerged in San Francisco, California, in the 1960s but its last store in the city will leave later this month.
The North Face store in Union Square is set to join a mass of other retailers abandoning the area including Macy’s.
A spokesperson for the brand confirmed to SF Gate on Thursday that the store will shutter on March 31st.
“The North Face was born in San Francisco, and we have cherished the time spent here, building roots, and creating lasting memories,” a company representative said in a statement.
Following the closure in three weeks, the North Face will be left with just a handful of stores across the Bay Area.
“Despite the closure, The North Face will continue to operate and thrive in these remaining communities,” the company said.
“We remain dedicated to providing quality gear and fostering exploration for our community members.”
The announcement by Macy’s last month that its flagship store from 1929 would be axed as part of its plans to close 150 stores by 2026, “spelled doom for the downtown area”, says the outlet.
“As well as the iconic department store’s announcement, the former Westfield downtown shopping mall is only 25% full as retailers go elsewhere.”
Retailers Madewell, Adidas, J. Crew, Lucky Brand, Hollister, and Aldo are just some of the stores that have closed or have announced their imminent closures in the mall.
Most retailers in the area cite a lack of patrons and safety concerns for employees as the primary reasons for closing.
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Also Read: Beloved Retailer With 850 Stores Will Now File Bankruptcy
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