- Reuters
Morgan Stanley, Frasers settle UK lawsuit over $1 bln margin call
British retail tycoon Mike Ashley's Frasers Group has withdrawn its London lawsuit against Morgan Stanley over a nearly $1 billion margin call, a spokesperson for the Wall Street bank said on Friday. Frasers had sued Morgan Stanley for about 47 million euros ($50.5 million) after the bank imposed the margin call – security to cover possible losses – on the retailer's trading position in German fashion group Hugo Boss in May 2021. Ashley, whose fortune is estimated by Forbes to be worth $5.1 billion, gave evidence at the trial at London's High Court in February that the demand for collateral left him in "total shock".
- Reuters
UK's Frasers puts MATCHES into administration
British apparel and sportswear retailer Frasers Group PLC said on Thursday it has put online clothing platform MATCHES into administration, after buying it last year for about 52 million pounds ($66.59 million). Frasers said since the acquisition, MATCHES has consistently missed its business plan targets and continued to make material losses. "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," Frasers said.
- Reuters
UPDATE 1-Morgan Stanley forced Frasers off books with $1 bln margin call, court told
Morgan Stanley used an "unrealistic" and "inappropriate" near $1.0 billion margin call to force trades held by retail tycoon Mike Ashley's Frasers group off its books partly out of snobbery, London's High Court was told on Wednesday. Ashley, whose fortune is estimated by Forbes to be worth $5.2 billion, told the first day of a two-week trial that the demand for collateral by the Wall Street bank, that had spurned him as a client three years ago, had left him in "total shock". Frasers is suing Morgan Stanley for about 47 million euros ($51 million) over alleged costs and lost trading profits after the bank imposed the margin call - security to cover possible losses - on the retailer's trading position in German fashion group Hugo Boss in May 25, 2021.
