Burberry, Gucci and Prada among Matchesfashion creditors owed £36 million
Burberry, Gucci and Prada are among the creditors owed £36 million following the collapse of Matchesfashion last month.
The luxury brands are part of over 500 unsecured creditors, with administrators at Teneo confirming that they are unlikely to be paid back and if they are, the amount would be "very low".
"On present information, it is unlikely that sufficient funds will be realised to enable a distribution to be made," the firm said.
Among the luxury brands listed, Gucci was owed £553,338, Burberry £467,525, Max Mara £438,792, Bottega Veneta £326,564, Yves Saint Laurent £323,648 and Prada £281,069.
However, the administrators said it expects to pay in full almost £300,000 to employees and £1.2 million to HMRC.
Matchesfashion fell into administration shortly after it was purchased by Frasers Group for £52 million in December 2023.
Since it was appointed, Teneo said it had received 11 offers for parts of the business, and is now negotiating with prospective suitors "to achieve the optimum outcome" for stakeholders, according to The Financial Times.
The business was founded around 35 years ago by Tom and Ruth Chapman and began life as a single boutique in London's Wimbledon Village. It expanded into other high-end neighbourhoods including Richmond-upon-Thames, Marylebone and Notting Hill, and in 2018, it opened an experiential, digitally enabled townhouse shopping experience in Mayfair.
In the mid-2000s, Matchesfashion entered the online arena and, with that, gained a global reputation in global luxury and became a destination of discovery for up-and-coming and niche brands, as well as a home to some of the world's biggest designer names.
However, following its sale to Apax in 2017, it faced a revolving door at the top of the business, with the CEO at the time of the sale to Apax, Ulric Jerome, departing in 2019. He was replaced in 2020 by Ajay Kavan, a former Amazon executive, who lasted just a year in the role. In September 2021, Paolo De Cesare, formerly of Printemps Group, took over and was gone by July 2022, when former ASOS CEO Nick Beighton took the helm.
Financial results deteriorated during the period and it also closed stores in Richmond-upon-Thames and Notting Hill. In January 2023, Apax injected a further £60 million into the business to fund a turnaround. By the end of the year, however, rumours of its sale emerged. Frasers Group eventually purchased the collapsed business for £52 million. This represented a huge discount on the price Apax paid in 2017 when the business was reportedly valued at around £800 million.
