Frasers CFO defends retail rescue strategy amid fresh scrutiny

Frasers Group has hit back at criticism over its acquisition tactics, insisting that its approach to buying struggling retailers is about preservation, not exploitation.

The Mike Ashley-founded retail giant, which owns Sports Direct, House of Fraser and Flannels, has faced growing scrutiny for acquiring failing businesses only to place them into administration shortly afterwards. Critics argue this strategy amounts to asset-stripping - shedding liabilities like leases and staff while salvaging brand names and IP.

But Chris Wootton, Chief Financial Officer of Frasers Group, dismissed such claims as "unfair". Speaking to The Times, he said: "A lot of what we acquire is very, very distressed businesses that are bankrupt".

He added: "Without us saving them there has to be efficiencies found because … that’s why they went into bankruptcy in the first place. We feel we can turn these businesses around and make them successful by bringing them into the Frasers Group ecosystem. We’re very good at it and we’ve done it multiple, multiple times."

Chris Wootton, CFO at Frasers Group

Frasers Group has built its empire by snapping up distressed retailers at low prices, including Jack Wills and Missguided. Many of these acquisitions have been followed by restructuring or liquidation, sparking questions around the group’s long-term intentions.

Recently, the retail giant sparked controversy over its administration of MatchesFashion. Frasers acquired the luxury e-tailer in a pre-pack deal last April for £19 million, just one month after the business entered administration. The deal included Matches’ brand name and intellectual property but excluded £80 million of stock and 250 employees.

Nick Beighton, Matches’ former CEO, described the move as "unnecessary" and claimed the business could have been revived. The deal drew backlash from brands, creditors and former staff.

Wootton defended the decision: "Matches was a massively loss-making business [and it] went into bankruptcy. We went in with our eyes open that it was going to be difficult to turn around and it proved to be. It wasn’t like we went in with our eyes closed. We knew what would happen and ultimately we took a very quick decision to put it back into administration because we didn’t feel we could, you know, turn it around successfully.”

Despite the criticism, Frasers shows no signs of slowing its acquisition spree. Wootton confirmed the group is "constantly looking at where we can grow", with further deals likely on the horizon.

This comes just days after Frasers revealed it had delivered another year of record growth for the 52 weeks ending 27 April 2025, despite a decline in revenue.

The company reported an APBT of £560.2 million, up 2.8%, as it continued to build "a broader platform for multi-year, sustainable profitable growth". As part of this, Frasers Group delivered £127.2 million of underlying cost-savings and synergy benefits, largely from recent investments in warehouse automation and acquisitions.

However, revenue declined 7.4% to £4.7 billion, primarily due to planned reductions in segments such as Game UK and Studio Retail.