Matchesfashion has been put under administration after its parent company Frasers, said it was no longer willing to provide the money needed to keep the business running.
The online brand sells Luxury fashion from designer brands including Balenciaga, Gucci and Valentino.
The brand started as a single shop in Wimbledon, London 30 years ago, now the brand has six locations.
No store closures or job losses have been announced yet.
Marchesfashion was sold to Frazers last year in December after it struggled under its previous leader Mike Ashley.
Read more on store closures
It is unclear whether Nick Beighton, the former ASOS chief will continue his role during the administration process.
The brand employs just under 700 people but Frasers admitted Matches was “consistently” missing target and making “material losses”.
In the year to the end of January 2023, the brand made a £33.5 million loss.
Retail sources have suggested Frasers had tried to secure sizable discounts from suppliers in recent weeks.
Frasers to shareholders on Friday: “Whilst Matches’ management team has tried 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.”
Matchesfashion has been the only brand under the Frazers umbrella to struggle.
We’ve seen two Flannels stores closing in recent months, one in Bolton and another in Bradford.
But it looks like the Frazers group has been putting it’s efforts elsewhere.
The group has opened several “new concept” stores in major locations.
It recently announced it will be taking over the former John Lewis site at Queensgate Shopping Centre, Peterborough.
The concept stores hold a range of Frazer’s brands including Sports Direct store, beauty halls as well as products from USC, Jack Wills and GAME.
What is happening to the high street?
Many retailers have been struggling to get by over the past few years.
The pandemic was a tough blow as many stores had to close during lockdown.
Since then energy costs have risen and more shoppers than ever are choosing to order online rather than head into stores.
This has left some retailers grappling with budgets and having no choice but to close stores to cut costs.
The Body Shop is currently going through administration and announced plans to close half of its 198 stores with seven already closing last week.
Boots revealed it would be closing 300 stores over the next year as part of plans to evolve its brand.
WHSmith told The Sun it has no plans to open anymore more high street stores as it wants to focus on the travel side of its business.
Barclays is to start pulling the shutters down on 14 sites in England, three in Wales and three in Scotland as soon as April.
Even charity shops are struggling Oxfam confirmed it would close eight of its UK stores last year.
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