Troubled UK retailer House of Fraser snapped up by sports chain
House of Fraser, the Chinese-owned UK department store chain, entered administration yesterday only to be swiftly snapped up by retailer Sports Direct for £90 million (US$115 million, 100 million euros).
The 169-year-old company joined a string of major British retailers who have fallen victim to fierce online competition, rising business rates and stretched household budgets amid Brexit uncertainty. House of Fraser, which has department stores dotted across Britain and Ireland, currently employs about 17,500 staff but 6,000 jobs were already on the chopping block in an overhaul that had been unveiled in June.
Shortly after it revealed it would be appointing administrators, Sports Direct announced it had acquired almost all the business and assets for £90 million.
“The group has acquired all of the UK stores of House of Fraser, the House of Fraser brand and all of the stock in the business,” the firm said in a statement to the London Stock Exchange.
Sports Direct owner Mike Ashley already had an 11 percent stake in the department store chain, and also has stakes in rivals such as Debenhams and French Connection.