Mike Ashley’s Frasers Group has announced that Matches Fashion has been put into administration months after it acquired the business for around £52 million.

Frasers acquired Matches from private equity owner Apax Partners late last year in what was considered a cut price deal in light of the company’s struggles.

The Adjusted EBITDA for Matches’ financial year ended 31 January 2023 reflected losses of over £33 million.

Frasers said in a statement that Matches had “consistently missed” its business plan targets and, notwithstanding support from the group, had continued to make material losses.

“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,” Frasers continued. “In light of this, Frasers has been informed that the directors of Matches have taken the decision to put the Matches group into administration.”

Matches chief executive Nick Beighton, who previously served as Asos chief executive, told publication Drapers last November that the company had started to deliver “green shoots of progress” despite its widening losses.

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