Luxury retailer Matches is working with restructuring firm Teneo to explore funding options for the business.
Matches, the luxury retailer, is reportedly working with restructuring firm Teneo in its efforts to secure funds for its ongoing revitalisation strategy.
According to sources, the business aims to raise approximately £50m and is exploring various avenues, including the possibility of obtaining fresh equity from new investors. However, Matches has chosen not to confirm this specific figure.
In January, Matches received an infusion of £60m from its private equity supporter, Apax Partners, comprising £40m in equity and £20m in debt. Currently, Apax is not inclined to offer further investment in this phase, as per insights gathered by Drapers.
The retailer disclosed an operating loss of £67.2m for the year ending on January 31, a significant increase from the £37.5m loss the previous year, attributing the change to global economic challenges. The adjusted EBITDA loss also widened to £33.7m from £25m in 2022. Revenue experienced a 1.7% decline, totaling £380m for the year, influenced by the transition from wholesale to concessions involving several key brands toward the end of FY21.
In its annual results, Matches mentioned initiating discussions with its shareholders and lenders regarding the renewal of an asset-backed lending facility set to expire on August 31, 2024. As of January 31, the company held £23m in cash and cash equivalents, which included £20m from the asset-based lending facility.
A Matches spokesperson reiterated ongoing talks with shareholders and lenders regarding the renewal of the asset-backed lending facility, referencing prior announcements made in November.
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