Matchesfashion, a luxury retailer, has received a financial boost of £60 million from its private equity owner, Apax partners. This funding package, consisting of £40 million in equity and £20 million in additional debt, will provide crucial support to Matchesfashion as it focuses on its turnaround strategy. The company has also managed to secure covenant waivers and extensions with its lenders.
In recent years, Matchesfashion has encountered various challenges; however, under the leadership of CEO Nick Beighton, who took over last summer, the retailer has implemented a comprehensive turnaround plan. Beighton, who previously served as the CEO of ASOS, succeeded Paolo De Cesare after a brief 10-month tenure.
According to Sky News, Beighton’s stewardship has already shown promising results, with a 15% increase in order demand during the Christmas period. A spokesperson for Matchesfashion emphasized the company’s strong trading performance and the substantial reinforcement of their top-level team. With the additional financial support from Apax Funds, Matchesfashion is well-positioned to continue driving its turnaround plan and achieve sustainable commercial success.
In 2017, when Apax gained control of Matchesfashion, the business was valued at approximately $1 billion. However, it has encountered operational issues since then. The £60 million cash injection not only acknowledges the company’s existing challenges but also demonstrates Apax’s confidence in the potential success of the turnaround plan.
Overall, Matchesfashion’s funding package and covenant waivers, coupled with the capable leadership of CEO Nick Beighton, indicate that the luxury retailer is on the path towards recovery and growth. With a strong trading performance and additional financial support, Matchesfashion is well-positioned to overcome its operational hurdles and achieve long-term success in the competitive luxury retail industry.
Useful links:
1. Matchesfashion official website: https://www.matchesfashion.com/
2. Apax Partners website: https://www.apax.com/
