Matches, a British luxury e-commerce site, has announced that it is closing its site permanently at the end of June after a financial collapse. The platform will close at midnight on June 30 and is currently running an inventory clearance sale with up to 80% off.
Matches have been in a precarious position for the past several years, with the business on the verge of collapse under the leadership of its last CEO, Nick Beighton.
Accordingly, the Frasers Group, led by Mike Ashley, invested 52 million pounds in Matches last December in an attempt to restructure the company. However, just over two months into the deal, Frasers Group noted that the company “has consistently missed its business plan targets and, notwithstanding support from the group, has continued to make material losses.” Match’s management has been trying to find ways to stabilize the business, but it has become clear that “too much change would be required to restructure it, and the continued funding requirements would be far in excess of amounts that the group considers to be viable.”
Matches was founded in 1987 by Tom and Ruth Chapman as a retail store in Wimbledon, southwest London. The store has since expanded, and when it shifted its focus to online e-commerce, it expanded its target audience from the UK to international markets. In 2017, the couple sold a majority stake in the business to private equity group Apax Partners, which then sold the business to Frasers Group. After 30 years, this luxury e-commerce site came to a very sad end.
Challenges Facing the Luxury E-Commerce Industry
The once-flourishing luxury e-commerce industry has faced severe challenges in recent years amid intense competition and market volatility. Last year, ailing Farfetch was acquired by South Korea’s Coupang, and Farfetch founder José Neves subsequently announced his retirement. Likewise, Richemont-owned Yoox Net-A-Porter is also facing financial difficulties and is currently looking for a buyer.
This situation certainly suggests to the industry as a whole the need to explore new business models and strategies.