Frasers Group Considers Bid For Yoox Net-a-Porter

By Madeleine Foster

British retail giant Frasers Group is reportedly considering a bid for Yoox Net-a-Porter (YNAP), the struggling online luxury fashion platform owned by Swiss company Richemont. This news comes after Richemont put YNAP up for sale, with the platform failing to meet expectations. A previous deal to merge YNAP with Farfetch fell through due to Farfetch's financial difficulties.

Frasers Group, known for its ownership of Sports Direct and Flannels, has been actively acquiring businesses in the retail sector. They recently purchased YNAP's competitor Matches Fashion, although it was later placed into administration.

According to the report, Frasers seeks a deeper look at YNAP's finances before making a formal offer. This is being facilitated through a non-disclosure agreement currently being drafted. Meanwhile, Richemont, the luxury group that owns brands like Chloé, Cartier, and Alaia, is reportedly eager to sell YNAP, possibly even for a lower price than initially expected.

Analysts believe a potential acquisition of YNAP would bolster Frasers' luxury offerings, particularly through their Flannels chain. YNAP offers a wider range of brands than Flannels currently carries, including the highly-regarded Net-a-Porter and Mr Porter websites. However, some industry watchers are cautious. Frasers Group's handling of Matches Fashion raised concerns, with the company shutting down the business shortly after the acquisition.

Frasers Group is currently in talks with investment bank Goldman Sachs, who are handling the sale of YNAP for Richemont. No official bid has been made yet.