Sports Direct To Keep As Many House Of Fraser Stores Open As Possible

LONDON (Alliance News) - Sports Direct International PLC Chief Executive Mike Ashley said ...

Alliance News 10 August, 2018 | 2:22PM
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LONDON (Alliance News) - Sports Direct International PLC Chief Executive Mike Ashley said Friday that the company will do its "best" to keep as many House of Fraser stores open as possible, after it rescued the struggling department store chain from administrators.

Sports Direct acquired the 169-year-old British retailer for GBP90 million in cash, saving around 17,000 jobs.

Ashley said: "This is a massive step forward and further enhances our strategy of elevation across the group."

"We will do our best to keep as many stores open as possible. It is vital that we restore the right level of ongoing relationships with the luxury brands. Our deal was conservative, consistent and simple. My ambition is to transform House of Fraser into the Harrods of the high street."

The sports clothing and equipment retailer bought the business and assets of House of Fraser's main operating units - House of Fraser Ltd, House of Fraser (Stores) Ltd and James Beattie Ltd from the administrators of the company.

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.

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.

Sports Direct shares were trading 0.9% lower at 402.90 pence each on Friday afternoon.

By Elena Cherubini; elenacherubini@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 316.80 GBX 0.89 -
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