Matches Fashion to close its online store for good

Matches Fashion, once a prominent name in the luxury online retail space, is set to cease operations. This decision is a shock to many in the fashion industry and luxury shoppers around the globe. Matches, known for its curated selection of high-end fashion, was founded by Tom and Ruth Chapman as a single brick-and-mortar store in Wimbledon Village in 1987, expanding into a global platform that stocked influential international luxury brands and supported British fashion talent.

The company transitioned from a brick-and-mortar store to an online platform in 2007, further solidifying its position in the digital retail space. Over the years, Matches Fashion developed a business model that purchased clothing and accessories at wholesale prices, stored them in owned or rented warehouses, and sold them to customers at retail prices. However, despite its innovative approach and early success, Matches has faced significant challenges in recent years.

After being acquired by Frasers Group in December 2023 for £52 million and subsequent financial support, the retailer has faced deteriorating trading conditions, leading to material losses and the decision to enter administration.

Matches Fashion is shutting down due to its inability to meet business plan targets and the substantial losses incurred. The group cited untenable conditions for turning the business around and has chosen to appoint administrators. Mike Ashley, who established Frasers Group and is known for his former ownership of Newcastle United football club, remains the group’s majority shareholder.

This move indicates that Matches Fashion’s difficulties, including issues with supplier relations and the need for substantial restructuring, have proven too great for Frasers Group to continue funding. Frasers Group’s portfolio has expanded to include more upmarket brands beyond its original focus on Sports Direct, such as Jack Wills, GAME, Flannels, USC, Evans Cycles, and House of Frase.

Originally published at https://retailboss.co on March 8, 2024.