Is Mike Ashley plotting a takeover of another UK retailer?
Retail tycoon Mike Ashley is understood to be plotting an acquisition of ailing luxury fashion site Matchesfashion.
Frasers Group is reportedly in “detailed” talks about a deal that would see the retail giant take control of the business, Sky News’ Mark Kleinman reported over the weekend.
A potential takeover would offer a lifeline for the designer online retailer, which has struggled in recent years due to the actions of former leaders, the outlet said.
However, former Asos chief executive, Nick Beighton who took the reins last year has been ploughing ahead with a turnaround plan for the firm.
Beighton told trade publication Drapers last month that “green shoots” were starting to appear in the business following a season of losses for the firm, as he looked to improve marketing and operational efficiency.
But despite best efforts the group has been whacked by a slowdown in demand for luxury items due to the cost of living crisis.
At the start of the year, Matches secured a £60m investment by its private equity backer Apax partners.
A Frasers takeover of Matchesfashion would add another feather in the cap of the retail group, which owns a host of high street and online stores such as Sports Direct and Flannels.
In recent months, the fashion powerhouse has been ploughing ahead with a growth strategy, which includes investments in flagship stores and online trading, and deepening its relationship with major athleisure players such as Nike and Adidas.
However chief Michael Murray did warn that the firm’s luxury and premium segment – largely based around the Flannels brand – was being hit by cost of living pressures.
City A.M has contacted mentioned parties for a response.