House of Fraser appoints administrators as hopes of rescue fade

Galtero Lara
Agosto 10, 2018

The company said "significant progress has been made" in reaching a sale of the group's business and assets.

In the statement in Luxembourg, where it has bond investors, House of Fraser said it would provide further updates "as and when appropriate". The administration is due to be arranged at a court hearing early on Friday morning.

The retailer has one store in Dublin and one in Belfast, though neither were in the cohort of outlets marked for closure under the rescue plan.

The chain, which has 59 stores nationwide, will continue trading while EY looks to complete a sale.

A notice in the Lincoln store window advised the store would open later at 11am on Friday, August 10.

Alex Williamson, chief executive of House of Fraser, said: "We are hopeful that the current negotiations will shortly be concluded".

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Events have moved quickly since the 169-year-old retailer told investors on Thursday it needed to raise new investment by 20 August.

"In the two weeks since the Cenbest and C.banner transaction ceased, the directors have brought forward a number of potential buyers and the group's financial advisers have run a comprehensive M&A process to identify and then develop other third-party interest that has culminated in the senior secured creditors leading negotiations with parties at a critical pace".

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.

"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 not clear what will happen now to those stores and their workforce following the takeover by Mr Ashley.

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