Apax Partners has agreed to infuse £40 million in equity and £20 million in additional debt into the online retailer of names such as Gucci and Valentino.
The private equity investor of Matchesfashion, an online upscale fashion store, is injecting tens of millions of pounds into the company as it attempts a turnaround under its new management.
London-based buyout firm Apax Partners has agreed to invest £60 million in Matchesfashion. Which offers labels such as Gucci, Prada, and Valentino.
The new capital will be £40 million equity and £20 million debt, with the latter likely to be settled soon.
Matchesfashion also received covenant waivers and extensions from its lenders.
The increased finance highlights both the hurdles Apax has faced since acquiring Matchesfashion in 2017 and its faith in the turnaround strategy of new CEO Nick Beighton.
Last July, Apax appointed ASOS’s former CEO, Mr. Beighton.
Monday, a company spokeswoman responded with the following statement: “Matchesfashion provides an exclusive audience for luxury goods, and our consumers adore the service we give.
Matchesfashion owner injects £60m to maintain online retailer
“Our recent trading performance has been exceptional, and we are well-positioned as a company, having greatly bolstered our executive team.
With Apax Funds’ backing, we can continue our recovery strategy and achieve long-term commercial success.
According to a source, the company has already seen great results under Mr. Beighton, with order demand up 15% year-over-year during the crucial pre-Christmas trading season.
The source reported Matchesfashion’s busiest trading day ever, 35% higher than the year before.
It is believed that its performance was particularly strong in the Middle East.
Apax acquired a controlling stake in Matchesfashion for approximately $1 billion, however, the investment has been plagued by operational issues.
Mr. Beighton was hired to succeed Paolo De Cesare, who joined the company barely 10 months prior as chief executive.
The arrival of the former ASOS CEO made him the fourth Matches CEO in less than three years.
In November 2021, the company’s financial statements revealed “substantial doubt” regarding its future, as its trade performance had not improved.
Its fortunes mirrored those of a large number of online fashion companies, that saw a COVID-inspired sales increase disappear.
ASOS has hired Scott Millar, a top executive in financial restructuring, to join its finance team.
From 2005 through 2015, Mr. Beighton was ASOS’s CFO and CEO.
He contributed to the company’s growth from £178m in revenue and 150 employees when he arrived to £3.9bn in sales and 15,000 employees, including warehouse staff, when he left.
Matches were launched in a single store in London in 1987. And its website currently receives 50 million views per year.
Its most formidable competitors are Farfetch and Net-a-Porter.
