In the news on UK stocks, FTSE 100-listed Frasers Group PLC (GB:FRAS) announced administration for its acquired e-commerce platform, Matches. The move comes just months after Frasers acquired Matches in December 2023 to enhance its luxury portfolio. According to Frasers Group, Matches was unable to meet its targets in the last two months, leading to huge losses. FRAS stock was trading down by 1.36% as of writing.
Frasers Group, a retail company founded by billionaire Michael Ashely, offers clothing, sports, and other lifestyle products. Meanwhile, Matches is an online retailer of premium luxury clothing, serving 150 countries beyond the U.K.
Acquisition Fallout
With this acquisition, Frasers Group aimed to revive Matches and drive profitable growth for the troubled website. At the same time, Frasers intended to strengthen its place in the luxury retail segment. The acquisition was considered a lifeline for Matches, considering its struggling performance over the last few years.
The company further stated that the management team at Matches attempted to stabilize the business but was unsuccessful. Additionally, the continuous funding requirements were deemed to surpass the group’s expectations.
Moving ahead, Frasers will remain committed to the luxury retail space and its other brand partners.
Is Frasers Group a Buy or Sell?
As per consensus among analysts on TipRanks, FRAS stock has been assigned a Moderate Buy rating. It is based on one Hold and one Buy recommendation. The Frasers share price target is 1,000p, which is 26% above the current level.
