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The high street billionaire Mike Ashley is in talks to buy Matchesfashion, the luxury clothing site, in a deal that would crystallise heavy losses for Apax Partners, its private equity backer since 2017.

Sky News has learnt that Mr Ashley’s Frasers Group is in detailed negotiations about a deal that could see it take control of Matchesfashion – which sells fashion brands including Balenciaga, Gucci and Valentino – within days.

City sources said that Frasers was among a small number of parties who submitted offers earlier this week.

Next, run by Lord Wolfson, is also said to have expressed an interest in buying Matchesfashion.

One insider said that if completed, Frasers was likely to pay in excess of £50m for the business, which has struggled under a succession of leadership teams prior to the arrival of Nick Beighton, the former ASOS chief, last year.

The deal would be a solvent one, according to insiders.

Under Mr Beighton, the platform’s performance has improved markedly with a renewed focus on operational efficiency and the sharpness of its marketing.

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It has, nevertheless, been caught out by the sharp slowdown in global luxury goods sales which is affecting retailers across the sector.

Apax is said to have invested as much as £600m of its investors’ money in Matchesfashion since buying the site from its founders six years ago.

Its impending cut-price sale underlines the severe pain being felt in the industry, just three years after many luxury retailers saw sales and company valuations boom during the pandemic.

Farfetch, the New York-listed but British-based fashion platform, is this weekend scrambling to raise hundreds of millions of dollars to secure its survival.

Talks with Apollo Global Management, revealed by Sky News earlier this week, are said to have faltered, leaving its future on a knife-edge.

Mike Ashley
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High street billionaire Mike Ashley

The takeover of Matchesfashion would deliver a significant boost to Frasers’ ‘elevation’ strategy, which is now spearheaded by the company’s chief executive – and Mr Ashley’s son-in-law – Michael Murray.

Mr Murray said at Frasers’ most recent results presentation that the strategy, which is partly being implemented through its Flannels brand, is paying off.

For Apax, the ownership of Matchesfashion has been a disaster.

Its most recent equity injection, worth £20m, was delivered in June, as part of a previously pledged £60m investment.

The company also said last month that it had started discussions with its shareholder and lenders about the renewal of an asset-backed lending facility due next summer.

Matchesfashion began life as a single shop in Wimbledon, south-west London, more than 30 years ago and now boasts over 100m annual visits to its website and app.

It features more than 500 established and ‘new generation’ designers, delivering to over 170 countries.

A syndicate of lenders led by a KKR credit fund is said to be first in line to receive the proceeds from a sale.

Teneo Financial Advisory is advising the company on the process to secure new investment.

Mr Beighton was drafted in to replace Paolo De Cesare as Matchesfashion’s chief executive, who joined the company as chief executive just 10 months earlier.

The former ASOS chief’s arrival made him the fourth boss of Matches in less than three years.

In November 2021, its accounts flagged “material uncertainty” over its future without an improvement in its trading performance.

Mr Beighton spent more than a decade at ASOS, initially as chief financial officer before becoming CEO in 2015.

He helped grow the company from £178m in revenue and 150 people when he joined, to sales of £3.9bn and a workforce of 15,000, including warehouse staff, when he left.

Apax, Matchesfashion, Frasers and Next all declined to comment.

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Getir quits UK with multimillion pound Tottenham Hotspur debt

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Getir quits UK with multimillion pound Tottenham Hotspur debt

Getir, the grocery delivery app which this month confirmed plans to exit the UK, has an outstanding debt to Tottenham Hotspur Football Club running to millions of pounds.

Sky News understands that Turkey-based Getir, whose three-year training kit sponsorship deal with Spurs expired at the end of the Premier League season on Sunday, owes close to £5m to the club.

News of the outstanding debt comes as Getir tries to access a tranche of agreed funding from major investors Mubadala and G Squared to help facilitate its withdrawal from the UK, Germany and the Netherlands.

It was unclear this weekend whether the delivery app, which means “to bring” in Turkish, has the means to settle its financial obligations to Spurs.

The company once attained a valuation of almost £10bn, but has been forced by its deteriorating finances to retrench back to its home market, in the process axing thousands of jobs.

Its withdrawal from the UK has put about 1,500 jobs at risk, Sky News revealed earlier this month.

Companies such as Getir were big winners during the pandemic, attracting funding at astronomical valuations.

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Its decline highlights the slumping valuations of technology companies once-hailed as the new titans of food retailing.

Many of its rivals have already gone bust, while others have been swallowed up as part of a desperate wave of consolidation.

Getir itself bought Gorillas in a $1.2bn stock-based deal that closed in December 2022.

Getir and Tottenham Hotspur both declined to comment.

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Sir Jim Ratcliffe scolds Tories over handling of economy and immigration after Brexit

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Sir Jim Ratcliffe scolds Tories over handling of economy and immigration after Brexit

Billionaire Sir Jim Ratcliffe has told Sky News that Britain is ready for a change of government after scolding the Conservatives over their handling of the economy and immigration after Brexit.

While insisting his petrochemicals conglomerate INEOS is apolitical, Sir Jim backed Brexit and spent last weekend with Labour leader Sir Keir Starmer at Manchester United – the football club he now runs as minority owner.

“I’m sure Keir will do a very good job at running the country – I have no questions about that,” Sir Jim said in an exclusive interview.

“There’s no question that the Conservatives have had a good run,” he added. “I think most of the country probably feels it’s time for a change. And I sort of get that, really.”

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Sir Jim was a prominent backer of leaving the European Union in the 2016 referendum but now has issues with how Brexit was delivered by Tory prime ministers.

“Brexit sort of unfortunately didn’t turn out as people anticipated because… Brexit was largely about immigration,” Sir Jim said.

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“That was the biggest component of that vote. People were getting fed up with the influx of the city of Southampton coming in every year. I think last year it was two times Southampton.

“I mean, no small island like the UK could cope with vast numbers of people coming into the UK.

“I mean, it just overburdens the National Health Service, the traffic service, the police, everybody.

“The country was designed for 55 or 60 million people and we’ve got 70 million people and all the services break down as a consequence.

“That’s what Brexit was all about and nobody’s implemented that. They just keep talking about it. But nothing’s been done, which is why I think we’ll finish up with the change of government.”

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Sir Jim’s mission to succeed at ‘the one challenge the UK has never brought home’

UK needs to get ‘sharper on the business front’

Prime Minister Rishi Sunak has indicated an election is due this year but Monaco-based Sir Jim is unimpressed by the Conservatives’ handling of the economy.

“The UK does need to get a bit sharper on the business front,” he said. “I think the biggest objective for the government is to create growth in the economy.

“There’s two parts of the economy, there’s the services side of the economy and there’s the manufacturing side. And the manufacturing, unfortunately, has been sliding away now for the last 25 years.

“We were very similar in scale to Germany probably 25 years ago.

“But today we’re just a fraction of where Germany is and I think that isn’t healthy for the British economy… particularly when you think the north of England is very manufacturing based, and that talks to things like energy competitiveness, it talks to things like, why do you put an immensely high tax on the North Sea?

“That just disincentivises people from finding hydrocarbons in the North Sea, in energy.

“And what we need is competitive energy. So I mean, in America, in the energy world, in the oil and gas world, they just apply a corporation tax to the oil and gas companies, which is about 30%. And in the UK we’ve got this tax of 75% because we want to kill off the oil and gas companies.

“But if we don’t have competitive energy, we’re not going to have a healthy manufacturing industry. And that just makes no sense to me at all. No.”

‘We’re apolitical’

Asked about INEOS donating to Labour, Sir Jim replied: “We’re apolitical, INEOS.

“We just want a successful manufacturing sector in the UK and we’ve talked to the government about that. It’s pretty clear about our views.”

Sir Jim was keener to talk about the economy and politics than his role at struggling Manchester United, which he bought a 27.7% stake in from the American Glazer family in February – giving him an even higher business profile.

Old Trafford stadium in Manchester. Pic: AP
Image:
Old Trafford stadium in Manchester. Pic: AP

Push for stadium of the North

He is continuing to push for public funds to regenerate Old Trafford and the surrounding areas despite no apparent political support being forthcoming. Sir Keir was hosted at the stadium for a Premier League match last weekend just as heavy rain exposed the fragility of the ageing venue.

“There’s a very good case, in my view, for having a stadium of the North, which would serve the northern part of the country in that arena of football,” Sir Jim said. “If you look at the number of Champions League the North West has won, it’s 10. London has won two.

“And yet everybody from the North has to get down to London to watch a big football match. And there should be one [a large stadium] in the North, in my view.

“But it’s also important for the southern side of Manchester, you know, to regenerate.

“It’s the sort of second capital of the country where the Industrial Revolution began.

“But if you have a regeneration project, you need a nucleus or a regeneration project and having that world-class stadium there, I think would provide the impetus to regenerate that region.”

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Marks & Spencer’s website and app go down

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Marks & Spencer's website and app go down

Marks & Spencer’s website and app has not been working for several hours, with a message telling shoppers “you can’t shop with us right now”.

“We’re working hard to be back online as soon as possible,” it adds.

All the menus and images have disappeared apart from one showing a model in a green jacket.

Customers trying to use the app got the message: “Sorry you can’t shop through the app right now. We’re busy making some planned changes, but will be back soon.”

The site is understood to have been down for several hours.

Replying to one customer on X, the retailer said: “We’re experiencing some technical issues but we are working on it.”

M&S is the latest high street name to have technical issues – last month some Sainsbury’s shoppers had problems with their online orders.

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The outage comes a few days before M&S is expected to reveal a big jump in annual profits.

It’s been a successful year for the brand, with strong sales across the business following a turnaround plan that has included store closures and cost cutting.

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