The future of House of Fraser is expected to be settled tomorrow. The department store was established in Glasgow in 1891 and currently has 59 locations, including the flagship store on Buchanan Street.
House of Fraser said in a statement to bondholders that it continued to negotiate with interested investors and its main secured creditors “to enable receipt of an investment required by no later than August 20”. This is the date by which the company must make its next payment to wholesale partners, whose merchandise accounts for just over a third of its sales.
Reports suggest Sports Direct, controlled by Mike Ashley, has proposed placing the company in a “pre-pack” administration before salvaging parts of it. Sports Direct already owns 11 per cent of House of Fraser’s UK and Ireland operating company, and 29 per cent of its rival Debenhams. It’s understood up to three rival bids were submitted today during last-ditch rescue talks.
The group’s fate will largely be decided by its creditors.