Philip Day mulls House of Fraser rescue bid

THE billionaire owner of Edinburgh Woollen Mill could throw House of Fraser a lifeline as the troubled department store chain edges closer to collapse.

Philip Day, who also controls fashion chains Jaeger and Peacocks, is in talks with the retailer over a potential investment after China’s C.banner pulled out of a £70m rescue deal.

Such an offer could set up the retail tycoon for a potential takeover battle with fellow retail billionaire Mike Ashley, who is also keen to strike a deal.

The Sports Direct founder, who owns 11pc of House of Fraser, has approached it with what he considered to be “better terms”, but discussions are at an early stage.

House of Fraser said it was in talks with alternative lenders and investors as it scrambles to secure a cash injection on the same timetable. The investment bank Rothschild is advising the chain on the sale process.

Mr Day has yet to lodge a formal offer for the retailer and may not proceed with a firm bid, Sky News reported.

The billionaire has been at the centre of one of the country’s most colourful boardroom rows. He was lined up as the new chairman of Stobart Group, but a group of investors failed to unseat the current chairman Iain Ferguson. His interest comes after The Daily Telegraph revealed that accountancy giant EY had been put on standby to handle the potential collapse of House of Fraser after C.banner went cold on the deal.

C.banner had intended to raise the money via a placing on the Hong Kong stock exchange but was forced to abandon the plan after a sharp fall in its share price in recent weeks. If a new backer cannot be found, 17,000 jobs could be at risk.