House of Fraser has been sold to Sports Direct International
Department store chain House of Fraser has been sold to Sports Direct International in a prepack cash deal worth £90 million that includes all 59 of its stores, its stock and its IP.

The transaction — which completed moments after the chain was placed into administration through Ernst & Young (EY) Friday morning — saves 16,000 jobs in the short term.

At a stroke, it also null and voids House of Fraser's plan to close 31 of its stores via a Company Voluntary Arrangement (CVA) which, for now, spells goods news for the staff and concessions operating in those units.

Further down the line, store closures are likely, with Mike Ashley, Sports Direct CEO, falling short of guaranteeing their future by saying "we will do our best to keep as many stores open as possible."

He added: "This is a massive step forward and further enhances our strategy of elevation across the group. This will benefit both House of Fraser and Flannels [another Sports Direct-owned retailer] in the luxury sector.

"Our deal was conservative, consistent and simple. My ambition is to transform House of Fraser into the Harrods of the High Street."

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