Frasers Group has bought Matches intellectual property out of administration in a deal that does not include its £80m of stock or its 250 remaining employees.
The Mike Ashley controlled group said on Monday that it had reached an agreement with administrators at Teneo to acquire “certain intellectual property assets only” for an undisclosed sum.
As part of the agreement, Frasers has granted a license to administrators allowing them to “sell the stock Matches holds through a period of continued trading for the benefit of the administration”.
The group said in a statement that “brands and suppliers should be aware that all stock held by Matches does not form part of the transaction and the joint administrators continue to manage all operations of the business for the benefit of the administration”.
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Frasers placed the luxury ecommerce platform into adminstration last month less than three months after buying the business in a £52m cut-price deal from private equity firm Apax Partners.
An administrators’ progress report published last week revealed Matches owes more than 500 unsecured creditors, which include luxury brands such as Burberry, Gucci, Prada and Saint Laurent, around £36m – with many set to receive less than a penny in the pound.
Administrators said it had received 11 offers for Matches late last month but despite an “extensive marketing process”, no credible offers for the business were made.
Former chief executive Nick Beighton branded the company’s administration as “unnecessary” last week, explaining he believed there was still a chance to turnaround the ecommerce platform.
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