Direct Sports Manager Mike Ashley reached a £ 90 million deal to save Fraser's struggling home
Friday, August 10, 2018
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The owner of Direct Sports made a £ 90m takeover after the last talks with insolvency experts at the accounting firm Ernst & Young.
In a statement to the International Direct Sports Stock Exchange, it stated "the business acquisition and assets of House of Fraser from the House of Fraser administrator ... for consideration of £ 90 million in cash."
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Millionaire, who also owns Newcastle United, said Sports Direct would "do its best to save as many stores as possible."
He said: "My goal is to turn House of Fraser into Harrods on the high street."
The announcement came on a dramatic morning starting with House of Fraser appointing E & Y as administrator to end the 169-year solvent trade.
This is the biggest failure at retailers in the UK since Woolworths slumped to government over the past decade due to the financial crisis.
This is also the fourth administration for its main retailers this year following the failure of Maplin, Poundworld, and Toys R Us.
However. The final step by Sports Direct raised hopes that many of the 17,500 jobs at risk by administration could be saved.
This is due to months of negotiations with the House of Fraser management with landlords and Chinese company C Banner, which released a £ 150 million rescue plan less than two weeks ago.
Who leaves the company needs to look for £ 40 million to pay the rental bill on August 20 to prevent breast loss.
Although administration chief executive Alex Williamson said he still "hopes" that the future of business, which has major stores on Oxford Street, King William Street in City, Victoria and Westfield London at Shepherds Bush, can still be guaranteed.
Mike Ashley has held an 11 percent stake in the department store department since 2014. Sports Direct has built interest in several high-end chains in the UK, including rival Debenhams HoF and French Connection.
Sports Direct wrote to Hof's management last month saying he was "ready to compile transactions on the same terms (depending on reasonable efforts to verify the level of investment / cash injection needed) to one proposed by Hamleys' owners from China.
The House of Fraser announced in June a rescue plan that would result in the closure of 31 stores by 2019 including the main branches of Oxford Street and King William Street.
The highway has been hit by rising rental and business prices and fierce competition from online operators such as Amazon.
Helen Dickinson, chief executive of the British Retail Consortium, said: "This is a critical period for the retail industry, because of the perfect pressure of storms including rising costs and new technologies that are changing the way people shop."
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