House of Fraser battles deadline Talks continue as debt demand looms

EMBATTLED House of Fraser faces a race against time to find a buyer.

Bosses and its banks, including HSBC, are in emergency talks with possible saviours.

But the firm said yesterday it needed to clinch a finance deal by August 20, when up to £40million of payments to owners of in-store concessions is due. It also faces a £5m-a-month rent bill.

The chain said in a statement: “House of Fraser confirms that discussions with interested investors and its main secured creditors are focused on concluding as quickly as possible.”

Despite the deadline, it is possible a deal could be announced in the coming days.

Various options are being discussed, including someone buying it as a solvent business through to allowing it to go into administration, when parts could be flogged off. The uncertainty is worrying for the chain’s 17,500- strong workforce.

Sports Direct tycoon Mike Ashley, who owns a chunk of House of Fraser already, and retail billionaire Philip Day are among those linked with an offer.

Reports say the proposal by Day’s Edinburgh Woollen Mill Group would avoid House of Fraser effectively going bust.

The future of House of Fraser, which dates back 169 years, was thrown into doubt after a Chinese investor ditched a funding deal.

Plans have already been approved to close 31 of the chain’s 59 stores, including its flagship Oxford Street outlet in Central London.

More than a quarter of all big department stores have either been demolished or converted for other use since 2010, according to a report by business rates consultancy Altus Group.