RETAIL tycoon Mike Ashley has bought yet another struggling retail brand, snapping up Matchesfashion in a discounted deal.

Ashley's (pictured) ever expanding fashion conglomerate, Frasers Group, paid £52m for Matchesfashion, signalling heavy losses for the firm's private equity backer.

The takeover offered a lifeline for the designer online retailer, which has struggled in recent years due to the actions of former leaders.

Matchesfashion has been loss-making in recent years. The Adjusted EBITDA for the year ended 31 January was a loss of £33.5m.

Former Asos chief executive, Nick Beighton who took the reins last year has been ploughing ahead with a turnaround plan for the firm.

At the start of the year, it secured a £60m investment by its private equity backer Apax Partners.

Beighton told trade publication Drapers last month that "green shoots" were starting to appear in the business following a season of losses for the firm, as he looked to improve marketing and operational efficiency.

But despite best efforts the group has been whacked by a slowdown in demand for luxury items due to the cost of living crisis.

The deal is another feather in the cap for Frasers Group as it beefs up its portfolio of fashion brands.

Michael Murray, son in law of Ashley and the firm's current chief executive, said that the sale would strengthen Frasers' "luxury offering".

The company currently owns the Flannels brand, a high street and online retailer, which sells the likes of Dior and Marc Jacobs.

Murray said: "Whilst the global luxury environment is softer, we are confident that, by leveraging our industry-leading ecosystem, we will unlock synergies and drive profitable growth for Matches."

The boss has previously warned that the firm's luxury and premium segment - largely based around the Flannels brand - was being hit by cost of living pressures.

(c) 2023 City A.M., source Newspaper