169-year-old House of Fraser set to enter administration

LONDON: Britain’s House of Fraser, the Chinese-owned department store chain, said yesterday it is set to enter administration, placing 17,500 jobs under threat.

The company is the latest in a string of major British highstreet names to fall victim to online competition, rising business rates and stretched household budgets amid Brexit uncertainty.

“House of Fraser announces that its discussions with interested investors and its main secured creditors have not concluded in a solvent solution,” it said.

“The directors of the group’s operating companies have resolved to seek the appointment of administrators,” it said, adding progress had been made selling off assets.

The 169-year-old company, which is controlled by conglomerate Sanpower, sought to appoint Ernst & Young as its administrators yesterday.

Administration is the process whereby a troubled firm calls upon independent financial help to restructure its business and remain operational.

“Progress has been made towards completing a sale of the group’s business and assets. The proposed administrators are expected to continue to progress those discussions with a view to concluding a transaction shortly after their appointment.”

Meanwhile, its chief executive, Alex Williamson, said: “We are hopeful that the negotiations will shortly be concluded.”