House of Fraser: Department store set to close after appointing administrators
House of Fraser could be facing closure, with the department store chain needing to find funding by 20th August.
The brand has called in administrators after “discussions with interested investors and its main secured creditors have not concluded in a solvent solution.”
Following the statement, the brand has appointed Ernst & Young as administrators.
House of Fraser is currently embroiled in discussions with potential investors, focused on injecting funds into the business before the store needs to make payments to concession customers.
The company is set to close 31 of its 59 stores next January – affecting 6,000 jobs – but is currently seeking funding to continue its survival. House of Fraser currently employs 17,500, who now have their jobs at risk.
According to the BBC, the store had said that administrators will allow the business to continue trading, although the House of Fraser website was offline this morning.
A statement by the brand read: “Significant progress has been made towards completing a sale of the group’s business and assets.
“The proposed administrators are expected to continue to progress those discussions with a view to concluding a transaction shortly after their appointment.
“House of Fraser thanks all of its employees, suppliers and other stakeholders for their ongoing support.”
According to the Guardian, potential bidders include Mike Ashley, the owner of Sports Direct, Philip Day, the owner of Edinburgh Woollen Mill and restructuring expert Alteri.
House of Fraser needs to receive the investment by the 20th August, as it is due to pay our more than £15 million to suppliers at the end of the month.
One of the store’s suppliers, Nigel Lugg of Prominent Europe that supplies menswear to the brand, revealed that if House of Fraser went into liquidation, they would only receive around 3p in the pounds of what they are owed.
Yesterday, House of Fraser told the Luxembourg stock exchange that “discussions continue” with potential investors.
However today it was announced that these discussions have not concluded in positive news for the company.
House of Fraser stores to close
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