Frasers Group strikes deal to buy Matchesfashion for £50m - report

(Sharecast News) - Mike Ashley's Frasers Group has reportedly clinched a cut-price deal to buy luxury clothing site Matchesfashion. According to Sky News, Frasers has signed an agreement to take control of Matchesfashion from private equity firm Apax Partners - which sells fashion brands including Balenciaga, Gucci and Valentino - for a headline price of about £50m.

The deal will also include refinancing roughly £20m in debt owed by Matchesfashion, which also drew tentative takeover interest from Next. The deal is expected to be announced later on Wednesday, Sky said.

Apax is said to have invested as much as £600m of its investors' money in Matchesfashion since buying the site from its founders six years ago.

Its impending cut-price sale underlines the severe pain being felt in the industry, just three years after many luxury retailers saw sales and company valuations boom during the pandemic.