In a surprising twist, Frasers Group is reportedly in advanced negotiations to acquire Matches, a prominent luxury fashion retailer. As reported by Sky News, known for its reliable insights into fashion mergers and acquisitions, the talks are progressing swiftly and could result in a deal being finalized within days.
While initial speculation hinted at Frasers Group’s interest in Browns, the focus appears to be on an imminent acquisition of Matches. This potential move could not only outpace competitors but also pose a financial setback for Matches’ majority owner, Apax Partners.
City sources reveal that last week saw a flurry of competitive offers from various parties, with Next expressing a keen interest in entering the luxury sector. This would mark a significant shift for the primarily mass-market retailer, making waves in the industry.
As of now, official statements from Matches, Frasers, or Next are yet to be released regarding the reported negotiations. While the exact financial details remain undisclosed, industry insiders suggest the deal could surpass £50 million. This valuation is notably lower than Matches’ 2017 sale for approximately £800 million, indicative of the challenges faced by online luxury retailers, including industry giants like Net-A-Porter and Farfetch.
Matches, with its origins as a physical retailer in Wimbledon and a flagship townhouse in London’s Mayfair, presents a unique blend of online and offline presence. Successfully acquiring Matches would significantly fortify Frasers Group’s elevation strategy, aligning with its emphasis on expanding in the luxury segment, notably witnessed in the flourishing growth of its luxury Flannels chain.
Nick Beighton, former CEO of ASOS and current head of Matches, assumed leadership last year, succeeding Paolo De Cesare. This potential acquisition underscores Frasers Group’s strategic maneuvers in a dynamic retail landscape, particularly as it continues to build a substantial stake in ASOS.