Fashion Retailer Hires Teneo to Explore Funding Options

  • Matches Fashion seeks £50m cash injection to fund turnaround strategy
  • Hires advisory firm Teneo to explore funding options
  • Posted an adjusted EBITDA loss of £33.7m for FY22
  • Revenues slightly slipped to £380.1m from £386.6m in FY21
  • Order demand up 12% at £758.2m compared to £677.1m previous year
  • Expects £10m operational cost savings in FY23, improving losses
  • £20m additional capital secured from owner Apax Partners in June 2023
  • Discussions with shareholders and lenders regarding asset-backed lending facility renewal

Matches Fashion, the luxury fashion retailer, is seeking a cash injection of around £50 million to fund its turnaround strategy. The company has hired advisory firm Teneo to explore various funding options. In June 2023, it secured an additional £20 million in capital as part of the previously announced £60 million investment from owner Apax Partners. Despite posting an adjusted EBITDA loss of £33.7 million for FY22 and a slight revenue drop to £380.1 million compared to £386.6 million in FY21, order demand increased by 12% to £758.2 million from the previous year’s £677.1 million. The company expects £10 million in operational cost savings in FY23, leading to a significant improvement in losses. Matches is also discussing the renewal of an asset-backed lending facility due on 31 August 2024 with its shareholders and lenders.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Matches Fashion hiring an advisory firm and their financial situation, including revenue and cost savings. It also mentions previous investments and plans for future improvements. However, it lacks personal opinions or sensationalism.
Noise Level: 3
Noise Justification: The article provides relevant information about Matches Fashion hiring an advisory firm and its financial situation, but it lacks in-depth analysis or exploration of the underlying reasons behind the company’s need for a cash injection. It also does not offer any actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Matches Fashion, Apax Partners
Financial Rating Justification: The article discusses the company’s financial situation and its need to explore funding options, as well as its impact on investors and shareholders.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text

Reported publicly: www.retailsector.co.uk