Department Stores

House of Fraser sets new deadline to secure funds

House of Fraser has set itself a new deadline to secure funding to avoid collapse.

In a statement to the Luxembourg Stock Exchange, the company said that it would require an investment no later than 20 August. Earlier reports said the department store would make a final decision on its future this afternoon (9 August), as its creditors considered three rescue bids.

Takeover bids were made by Sports Direct’s Mike Ashley, retail tycoon Philip Day, and a retail turnaround fund was put forward by Alteri Investors.

In June, the department store chain approved a CVA, agreeing to shutter 31 of its 59 stores with the first of its closures being its Edinburgh outlet on 15 September.

House of Fraser looked set to be rescued from insolvency after Hamley’s owner C.Banner signed a deal to acquire a 51% majority stake in the company for £150m. However, C.Banner pulled out on 1 August as the retailer’s share price fell.

The company told Luxembourg Stock Exchange: “House of Fraser confirms that discussions continue with interested investors and its main secured creditors, which are focused on concluding as quickly as possible to enable receipt of an investment required by no later than 20 August 2018.

“House of Fraser thanks all of its employees, suppliers and other stakeholders for their ongoing support. House of Fraser will continue to update the market as and when appropriate.”

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