Frasers Group is reportedly in the final stages of negotiations to acquire luxury fashion site Matchesfashion, as part of its ongoing elevation strategy. Credit: Shutterstock.

Sources close to the matter have allegedly told news publication Sky News the deal, which could be finalised “within days”, is part of Frasers Group’s strategic expansion plans.

The city insiders suggested Frasers Group is one of the select few parties that recently submitted offers for Matchesfashion, however Lord Wolfson, the owner of UK retailer Next is also reported to have expressed interest in acquiring the luxury clothing platform.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The proposed acquisition, if successful, is anticipated to cost Frasers Group over £50m ($63m).

If the deal goes ahead it is expected to cement a substantial loss for private equity firm Apax Partners who have allegedly invested £600m of investor funds into the venture since acquiring it from the founders six years ago.

Sky News also reported that insiders familiar with the negotiations believe the impending deal will be financially sound.

GlobalData apparel analyst, Louise Deglise-Favre told Just Style Matchesfashion would help to diversify Fraser’s portfolio across price positionings.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Deglise-Favre told Just Style she believes the acquisition would help Frasers Group “further strengthen its premium and luxury proposition,” due to it successfully elevating luxury retailer, Flannels to a more “premium positioning.”

She went on to say that Matchesfashion’s lack of direction over the past few years has left it in a “precarious position.”

“However, the recent improvements under former Asos chief, Nick Beighton’s leadership are highly encouraging for the retailer, making it a potentially highly lucrative opportunity for Frasers if it manages to put its performance back on track,” added Deglise-Favre.

According to Sky News, Beighton’s renewed focus on operational efficiency and targeted marketing, Matchesfashion is said to have shown improvement in its overall performance.

Matchesfashion declined Just Style’s request to confirm the news whilst Frasers Group, Apax Partners and Next had not responded to our request for comment at the time of going to press.

Frasers Group reported a strong H1 for fiscal 2024 earlier this month (December) thanks to its ongoing acquisition spree. Its total revenues increased 4.4% from last year’s £2.65bn to £2.77bn in the first half of fiscal 2024 and this was attributed to retail growth combined with revenue from its acquisitions in the property segment.

Frasers Group’s chief executive officer Michael Murray said at the time: “Our long-term ambitions for our Premium Lifestyle business remain unchanged although it is likely that progress will remain subdued for the short to medium term in the face of a softer luxury market however, we continue to invest with confidence in our unique proposition.”