Sports Direct strikes £90m House of Fraser rescue deal

Sports Direct strikes £90m House of Fraser rescue deal

Mike Ashley, who also has a large stake in luxury fashion business Flannels, swooped in to secure the buyout just hours after the company, which owns the prestigious Jenners store on Princes Street, announced it was going into administration yesterday morning.

Shadow business secretary Rebecca Long-Bailey said Mr Ashley was "notorious" for Sports Direct's "poor treatment" of workers.

Cllr Mobbs said: "The House of Fraser store on the Parade has again been offered our support and, along with our partners, we will provide assistance in any way that is helpful during this time".

Administrators were appointed to the historic retailer this morning.

In a brief statement this morning, Mike Ashley's sporting goods and fashion retailer said it has "acquired all of the United Kingdom stores of House of Fraser, the House of Fraser brand and all of the stock in the business" as well as James Beattie Limited.

Would-be suitors include tracksuit tycoon Mike Ashley and Philip Day, the billionaire owner of Edinburgh Woollen Mill. The advantages brought by the warehouses and logistics already managed by this group will be an important key in the recovery of the House of Fraser's fortunes.

House of Fraser, which has department stores dotted across Britain and Ireland, now employs about 17,500 staff - but 6,000 jobs were already on the chopping block in an overhaul that had been unveiled in June.

"Our deal was conservative, consistent and simple".

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Mr Wilson called the possibility of a merger between the troubled department store chains a "viable solution" to reduce overheads.

Buying other businesses and strategic stakes forms part of that plan - equity investments have been made in Debenhams, French Connection, Game Digital, Findel and Goals Soccer Centres.

Two months ago, the company announced that the Worcester store was to close in 2019 with the loss of 149 jobs.

"Despite the very recent termination of the transaction between Cenbest and C.Banner, I am confident House of Fraser is close to securing its future".

It is unclear what the status of the CVA is following the takeover.

The Unite union said despite a media storm over the treatment of staff at Sports Direct's Shirebrook warehouse, wages remained at a minimum and employment conditions were "threadbare".

"Nevertheless, this is a part of the industry that is under a huge amount of pressure". "Turning around the business will not come easy".

British retailers with high numbers of stores are suffering from fierce online competition from the likes of Amazon, while battling against discounting in big supermarket chains.

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