Matches Fashion has entered into administration are the retailer made “material losses” as the company has “has consistently missed its business plan targets.”
The retailers parent company Frasers said that they are not prepared to put in the money required to keep the fashion company running.
Frasers who own Sports Direct said to keep Matches Fashion running the money needed would be “far in excess” of what they believe to viable.
In December Frasers bought the fashion retailer in a deal worth £52 million which employs just under 700 people.
“Since Frasers Group acquired Matches, the business has consistently missed its business plan targets and, notwithstanding support from the group, has continued to make material losses,” Frasers told shareholders on Friday.
“Whilst Matches’ management team has tried to find a way to stabilise the business, it has become clear that too much change would be required to restructure it, and the continued funding requirements would be far in excess of amounts that the group considers to be viable.
“In light of this, Frasers has been informed that the directors of Matches have taken the decision to put the Matches group into administration.
“Frasers remains committed to the luxury market and its brand partners.”
