CHINESE DEFEND HOUSE OF FRASER

The Chinese owner of struggling department store chain House of Fraser backed its bosses yesterday despite a fall in sales.

Sanpower bought the business for £480million in 2014. However, the store giant has suffered tough trading and has now been forced to ask store landlords for rent reductions.

House of Fraser yesterday revealed shop sales fell 2.9% in the six weeks December 23, with online takings tumbling 7.5%.

Alex Williamson, the chain’s new boss, insisted it was in “good shape”, with its decision to reduce discounting meaning profit margins rose 0.5% over the festive period. Asked about House of Fraser’s future, he said: “We are a 170-year-old business and we plan to be around for another 170 years.” It came as Yuan Yafei, chairman of Sanpower, said the group was “committed” to House of Fraser and “fully endorsed” its transformation plan.

The chain raised £30m by flogging unwanted own label brands to a Chinese buyer.