Prada, Burberry, and Gucci Among Unsecured Creditors

  • Matchesfashion’s collapse leaves creditors owing over £50m
  • Prada, Burberry, and Gucci among 956 unsecured creditors
  • Frasers Group purchased Matches in December 2023 but put it into administration within three months
  • Unsecured creditors unlikely to receive more than £600k
  • Matches’ losses soared past initial forecast of £31m

Matchesfashion’s collapse has left creditors such as Prada, Burberry, and Gucci owing a combined £50m, with hundreds of suppliers reportedly losing out. The companies are among 956 unsecured creditors to the fashion retailer, which was purchased by Frasers Group in December 2023. Frasers went on to put Matches into administration less than three months later. The amount owed to unsecured creditors grew 62% from the £31m initially forecast in the directors’ statement of affairs report, documents filed at Companies House found. Its administrator Teneo said this was due to claims being submitted at ’significantly higher’ values than in the statement of affairs, and that there were roughly 200 creditor claims which were not included in the report. Teneo said £13.8m in total had been settled at the date of the report, where valid retention of title claims existed. However, it said the remaining creditors, including landlords and customers, were unlikely to collectively receive over £600,000, or less than 2p in the pound. Frasers Group bought Matches IP assets out of administration in April 2024 under a deal that did not include its £80m of stock or its 250 remaining employees.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Matchesfashion’s collapse and the creditors owed money, including specific amounts owed to various companies such as Prada, Burberry, and Gucci. It also mentions the involvement of Frasers Group and Teneo in the situation. The only potential issue is the date mentioned (December 2023), which seems to be a typo or error, but overall, the article appears factual and informative.
Noise Level: 4
Noise Justification: The article provides relevant information about the financial impact of Matchesfashion’s collapse on creditors and affected parties, but it could benefit from more in-depth analysis or contextualization of the broader implications for the fashion industry.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses the collapse of Matchesfashion and its impact on creditors such as Prada, Burberry, Gucci, and other fashion brands. It also mentions the acquisition of Matches IP assets by Frasers Group for an undisclosed sum. This affects financial markets due to the owed amounts and the financial situation of these companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text, and it does not meet the criteria of an extreme event happening in the last 48 hours.

Reported publicly: www.retailgazette.co.uk