Former Matches Boss says entering business into administration was "unnecessary"
Former Matchesfashion boss Nick Beighton has said that Frasers putting the business into administration was "unnecessary", as administrators at Teneo confirm that they are currently considering 11 offers.
Beighton, who left the company last month, said yesterday at the Retail Technology Show that he believed there was a chance to turn around the e-commerce marketplace before "Frasers did what Frasers did", placing the company into administration.
He added: "It’s their choice as shareholders, but it wasn’t necessary, in my opinion."
It comes as restructuring firm 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.
Teneo told TheIndustry.fashion that "these offers are now being considered" but added that there is "no timeline for next steps".
Yesterday, it was revealed that Burberry, Gucci and Prada are among the creditors owed £36 million following the company's collapse. The luxury brands are part of over 500 unsecured creditors, with the administrators confirming that they are unlikely to be paid back and if they are, the amount would be "very low".
Matches 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 gaining 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 potential 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.
