Mike Ashley’s Frasers Group is gearing up to relaunch Matches Fashion as a members-only exclusive club following its controversial acquisition in a restructuring deal that left creditors with a deficit of £50 million.

An internal presentation obtained by The Times indicates that around the time of putting the luxury ecommerce platform into administration, the Sports Direct owner began formulating plans to transform Matches into the “Soho House of retail.”

The group, known for its ownership of Flannels and House of Fraser, purchased the Matches brand name and its intellectual property in a pre-pack administration arrangement in April of last year for £19 million. The agreement excluded Matches’ £80 million worth of stock and its remaining 250 employees, occurring a month after placing it into administration over claims that a rescue would require too much investment.

The decision to administer Matches drew criticism, notably from former Matches CEO Nick Beighton, who labeled it as “unnecessary” and asserted a turnaround was feasible. The process was also scrutinized because of its timing and its repercussions for creditors, brands, and employees.

Frasers’ strategy is currently being put forth to luxury brands, proposing a relaunch of Matches as an upscale fashion and lifestyle concept by year-end. This new concept will offer personalized shopping experiences, early access to exclusive items, luxury gifts, and invitations to events at its London stores.

The proposal indicates that membership would be extended through a committee of founding members and “global tastemakers,” emulating exclusive private member clubs like Soho House.

While Frasers has garnered interest from various brands, the initiative’s timing has frustrated many, particularly those adversely affected by the collapse. As a secured creditor to Matches, Frasers is set to recover the £94.4 million owed to it. Meanwhile, unsecured creditors, including Burberry and Cefinn, founded by Samantha Cameron, will not receive payment as their claims total £50 million.

Established in 1987 in Wimbledon by Tom and Ruth Chapman, Matches fell into administration in 2023 due to diminished demand for luxury fashion, heavy discounting, and a trend of shoppers seeking direct purchases from brands.

The company, which had a valuation of $1 billion upon its acquisition by Apax Partners in 2017, was sold to Frasers in late 2023 for £52 million in a fire sale. Frasers injected £33 million to keep the company afloat but chose not to provide further funding after a challenging Christmas season, opting instead to bring in administrators. Shortly thereafter, Frasers reacquired the brand and IP through a pre-pack deal, a legally permissible yet contentious insolvency process that enables a buyer to acquire business components while relieving liabilities.

Potential alternative bidders were discouraged due to secured debts owed to Frasers. A security interest over the assets of Matches was filed in favor of Frasers company Sports Direct in January 2024.

An independent evaluator of the transaction has affirmed that the arrangement was “reasonable in the circumstances.”

Beighton expressed that while he believes Frasers’ new proposition is strong, its success will largely depend on its ability to secure partnerships with enough brands willing to collaborate after many were left impacted by the collapse.

According to the outlined proposal, the initial phase of the revamped Matches will focus on womenswear slated for launch in spring/summer 2026, with plans for subsequent expansions into menswear and new international markets. Although the strategy is in preliminary stages and may evolve, the documentation suggests potential for reopening Matches’ previous locations on Welbeck Street and Carlos Place in London.

The initiative is being spearheaded by David Epstein, Chief Brand Partnerships Officer at Frasers, alongside Leanne Wiggins, a former Womenswear Director at Matches.

Frasers opted not to provide any comments on the matter.