Frasers Group is currently in talks for the acquisition of Matchesfashion, potentially leading to considerable setbacks for the retailer’s private equity firm, Apax Partners.
According to reports from Sky News, sources in the city have indicated that Frasers Group was among a limited number of entities engaged in discussions earlier this week.
There is also speculation that fashion heavyweight Next has expressed interest in procuring Matchesfashion.
Insiders have indicated that the potential transaction would be financially viable.
Despite the improved performance of Matchesfashion under CEO Nick Beighton, a former Asos chief who assumed the role in 2022, the company has still experienced the impact of the slowdown in global revenues from luxury goods.
It is estimated that Apax has injected approximately £600m into the fashion retailer since taking over the business six years ago.
The potential acquisition of Matchesfashion would significantly propel Frasers Group’s “elevation” strategy, as reported by Sky News.
This development comes after Frasers Group’s withdrawal from the SportScheck acquisition last month, as it opted to pursue a pre-pack deal instead.
The retail group cited the financial instability surrounding SportScheck owner Signa Holdings as the reason for its decision to back out of the deal.
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