TOP NEWS: Sports Direct Buys House of Fraser From Administrators

LONDON (Alliance News) - Sports Direct International PLC said Friday that it has acquired ...

Alliance News 10 August, 2018 | 10:11AM
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LONDON (Alliance News) - Sports Direct International PLC said Friday that it has acquired 169-year-old British department store chain House of Fraser for GBP90 million in cash, saving around 17,000 jobs.

The sports clothing and equipment retailer, which already has around 11% stake in the iconic British chain, will buy the business and assets of House of Fraser from the administrators of the company's main operating units - House of Fraser Ltd, House of Fraser (Stores) Ltd and James Beattie Ltd.

Under the deal, Sports Direct has acquired the House of Fraser brand, all of its UK stores and all of the stock in the business.

For the year ended January 28, 2017, House of Fraser group had gross assets of GBP946.3 million and made GBP14.7 million net profit.

Earlier on Friday, House of Fraser appointed Ernst & Young as administrator after failing to reach a "solvent solution" with its main creditors.

House of Fraser has been plunged into fresh crisis after C.banner, the Chinese owner of Hamleys, pulled its investment into the troubled retail chain.

C.banner was planning to buy a 51% stake in House of Fraser and plough GBP70 million into the ailing retailer, but scrapped the move last week.

Shares in Sports Direct were trading 0.1% lower at 406.3455 pence each on Friday morning.

By Tapan Panchal; tapanpanchal@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Sports Direct International PLC 386.70 GBX 0.68 -
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