Matches Fashion, London-based luxury e-tailer, has undertaken a considerable downsizing of its workforce by eliminating 273 positions. This action was a consequence of the company entering into administration after being acquired by the Frasers Group in December 2023.
The job cuts have had a substantial impact, amounting to nearly half of the workforce, considering the total staff previously numbered 533 across the head office and three London outlets.
The job reductions have permeated multiple departments, touching on roles related to buying, communications, analytics, and marketing. The insolvency firm Teneo, tasked with managing the administration, has attributed a stark decrease in demand to various economic pressures, such as reduced discretionary spending, soaring inflation, and climbing interest rates, all of which intensified the financial struggles of Matches Fashion.
Despite receiving additional funds from Frasers Group, the trading conditions for Matches Fashion failed to improve, leading to the harsh reality of administration. This downturn isn't isolated to Matches Fashion alone; the broader high-end retail sector is also grappling with a downturn, affecting the purchasing power of even the most affluent consumers.
Nonetheless, Frasers Group, known for its ownership of the Flannels luxury streetwear brand, remains invested in the premium retail segment despite the trials encountered with Matches Fashion. While the group is recognized for reviving troubled labels, the measures needed to rehabilitate Matches Fashion this time were regarded as disproportionately demanding.
