Frasers Group

The British handbag maker will lay off around 85 people globally as it aims to chart a path back to profitability after fending off a takeover bid from billionaire Mike Ashley’s Frasers Group.

In the latest blow to the luxury e-commerce sector, the embattled Matches is closing down just over two months after being acquired by Frasers Group as relationships with brands have reportedly soured.

While cash-strapped e-tailers Farfetch and Matches narrowly avoided collapse this week, both inking sales to new owners, online luxury’s way forward remains unclear.

The sale sees owner Apax Partners take a heavy loss on the British e-tailer, recently rebranded simply Matches, amid a broader meltdown in the luxury e-commerce space.

Amid a spending slowdown and steep competition, the UK fast-fashion players including Asos and Frasers Group are selling off struggling brands.

Frasers said on Monday, Shein will acquire the intellectual property and trademarks of Missguided, while Frasers will retain its real estate and employees which have now been integrated into Frasers’ fashion division.

The acquisition of Gieves & Hawkes, a 250 year-old brand, will secure its long-term future, said Frasers chief executive officer Michael Murray, Ashley’s son-in-law, who took over the reins in May.

The British sportswear retailer bought a 12.5 percent stake in the luxury leather goods company.

The sportswear retailer has agreed on 73 percent of a query over value added tax of €674 million.