Frasers Group is putting online luxury fashion retailer Matches into administration after buying it less than three months ago.

Frasers, which also acquired cycling retailer Wiggle earlier this week, bought Matchesfashion in late December for £52m.

A notice of intention to appoint an administrator was filed on Thursday. It is understood that Teneo is being appointed to run the administration process, according to The Telegraph.

Matches, which sells several brands including Gucci and Balenciaga, saw an improved performance under new leader Nick Beighton after its accounts flagged “material uncertainty” in late 2021.

It is understood that the company is appointing administrators after many brands terminated their relationships with the site and amid heavy losses.

Retail industry sources told Sky News that Frasers had tried to secure “sizeable discounts” from suppliers recently, with one source revealing that some brands had not been paid for months.

In a statement to the London Stock Exchange, Frasers said: “Since Frasers Group acquired Matches, the business has consistently missed its business plan targets and, notwithstanding support from the group, has continued to make material losses. 

“Whilst Matches’ management team has tried to try to find a way to stabilise the business, it has become clear that too much change would be required to restructure it, and the continued funding requirements would be far in excess of amounts that the group considers to be viable.

“In light of this, Frasers has been informed that the directors of Matches have taken the decision to put the Matches group into administration.

“Frasers remains committed to the luxury market and its brand partners.”