Mike Ashley’s Frasers Group says Matches to enter administration

The Chapmans sold a majority stake in the business to private equity group Apax Partners in 2017, who then sold the business on to Frasers Group.

Media reports suggested the company had been pushing for discounts from its suppliers in recent weeks.

“It appears that the issues at Matches were more significant than Frasers first thought,” said Catherine Shuttleworth, chief executive of retail analysis firm Savvy.

“Consumer confidence remains fragile and even luxury clothing shoppers are changing purchase behaviour. We know that 74% of shoppers are cutting back on the number of clothes that they buy.”

In a statement Frasers Group said the business had “consistently missed its business plan targets” and was making “material losses”.

“The continued funding requirements would be far in excess of amounts that the Group considers to be viable,” it said.

However, Frasers said it remained committed to the luxury market.

Two years ago Mr Ashley, who founded Sports Direct and established its reputation with cut-price deals on sports goods, handed the reins to his son-in-law, Michael Murray.

Mr Murray has taken a different tack targeting “new, luxury, aspirational” customers, and bought 60 Flannels stores, which sell designer clothes.

The Group now includes Jack Wills, Sofa.com, Game, Evans Cycles, Gieves and Hawkes, and House of Fraser.

Mr Ashley remains the majority shareholder.