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You can find the current article at its original source at https://www.theguardian.com/business/2018/aug/10/house-of-fraser-calls-in-administrators-as-rescue-talks-fail
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| House of Fraser calls in administrators as rescue talks fail | House of Fraser calls in administrators as rescue talks fail |
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| House of Fraser is appointing administrators, putting more than 17,000 jobs at risk, after attempts to agree a rescue deal failed. | House of Fraser is appointing administrators, putting more than 17,000 jobs at risk, after attempts to agree a rescue deal failed. |
| The department store chain said talks with its investors and creditors had “not concluded in a solvent solution”. The administration is due to be arranged at a court hearing early on Friday morning. | The department store chain said talks with its investors and creditors had “not concluded in a solvent solution”. The administration is due to be arranged at a court hearing early on Friday morning. |
| The company said its proposed administrator, Ernst & Young, planned to keep the business trading while it attempts to arrange a sale. The chain’s 59 stores are due to open on Friday, including 31 scheduled for closure as part of an earlier restructuring plan. | |
| House of Fraser traces its origins back to 1849, when Hugh Fraser and James Arthur opened a drapery shop on the corner of Argyle Street and Buchanan Street in the centre of Glasgow. By 1941, it had expanded into a number of shops in Scotland and became House of Fraser. | House of Fraser traces its origins back to 1849, when Hugh Fraser and James Arthur opened a drapery shop on the corner of Argyle Street and Buchanan Street in the centre of Glasgow. By 1941, it had expanded into a number of shops in Scotland and became House of Fraser. |
| The 1950s marked a period of major expansion for House of Fraser. In 1953, still owned by the Fraser family, the group extended its geographic reach across Scotland and into north-east England and Carlisle with the purchase of the Binns chain, which had its origins in an early 19th century Sunderland drapery business. Harrods, the luxury London department store, and Dickins & Jones, became part of the House of Fraser group in the late 1950s. | The 1950s marked a period of major expansion for House of Fraser. In 1953, still owned by the Fraser family, the group extended its geographic reach across Scotland and into north-east England and Carlisle with the purchase of the Binns chain, which had its origins in an early 19th century Sunderland drapery business. Harrods, the luxury London department store, and Dickins & Jones, became part of the House of Fraser group in the late 1950s. |
| Growth continued in the 1970s, with the addition of well-known names such as Rackhams, the Army & Navy stores and Dingles. | Growth continued in the 1970s, with the addition of well-known names such as Rackhams, the Army & Navy stores and Dingles. |
| Change came in 1985 when the House of Fraser group was bought by the Al Fayed family for £615m and a new business strategy was announced, with plans to replace smaller branches with larger stores. | Change came in 1985 when the House of Fraser group was bought by the Al Fayed family for £615m and a new business strategy was announced, with plans to replace smaller branches with larger stores. |
| In 1994 House of Fraser was floated on the London Stock Exchange at a market value of £484m, with Harrods split off and kept under private ownership by Al Fayed. | In 1994 House of Fraser was floated on the London Stock Exchange at a market value of £484m, with Harrods split off and kept under private ownership by Al Fayed. |
| A takeover bid from Scottish retail entrepreneur Tom Hunter was rejected in 2003 and some branches in Scotland were sold or closed. | A takeover bid from Scottish retail entrepreneur Tom Hunter was rejected in 2003 and some branches in Scotland were sold or closed. |
| However, two years later the group was in expansion mode again, buying 16 stores under the Jenners and Beatties brands became part of the group in 2005. Large new store openings followed in 2008 at locations including Belfast, Bristol and the Westfield shopping centre in west London. | However, two years later the group was in expansion mode again, buying 16 stores under the Jenners and Beatties brands became part of the group in 2005. Large new store openings followed in 2008 at locations including Belfast, Bristol and the Westfield shopping centre in west London. |
| In 2013, House of Fraser opened its first store overseas, in Abu Dhabi’s World Trade Center shopping mall. | In 2013, House of Fraser opened its first store overseas, in Abu Dhabi’s World Trade Center shopping mall. |
| House of Fraser was bought by China’s Nanjing Xinjiekou Department Store Co – also known as Nanjing Cenbest – in 2014. Angela Monaghan | House of Fraser was bought by China’s Nanjing Xinjiekou Department Store Co – also known as Nanjing Cenbest – in 2014. Angela Monaghan |
| Events have moved quickly since the 169-year-old retailer told investors on Thursday it needed to raise new funds by 20 August. | |
| Mike Ashley, the founder of Sports Direct, was reported to be close to agreeing a deal to buy House of Fraser out of administration. Sky News said Ashley could agree the purchase with the administrators on Friday morning. | Mike Ashley, the founder of Sports Direct, was reported to be close to agreeing a deal to buy House of Fraser out of administration. Sky News said Ashley could agree the purchase with the administrators on Friday morning. |
| EXCLUSIVE: Sports Direct tycoon Mike Ashley is close to striking a deal to buy House of Fraser. I understand that the Newcastle United FC owner could wrap up an agreement with administrators EY as soon as this morning, although deal has yet to be signed. Full story up soon. | EXCLUSIVE: Sports Direct tycoon Mike Ashley is close to striking a deal to buy House of Fraser. I understand that the Newcastle United FC owner could wrap up an agreement with administrators EY as soon as this morning, although deal has yet to be signed. Full story up soon. |
| “Significant progress has been made towards completing a sale of the group’s business and assets,” House of Fraser said in a statement to investors. | “Significant progress has been made towards completing a sale of the group’s business and assets,” House of Fraser said in a statement to investors. |
| “The proposed administrators are expected to continue to progress those discussions with a view to concluding a transaction shortly after their appointment.” | “The proposed administrators are expected to continue to progress those discussions with a view to concluding a transaction shortly after their appointment.” |
| The group needed about £50m after C.banner, the Hong Kong-listed owner of Hamleys, pulled out of plans to raise £70m to invest in House of Fraser. The investment was part of a restructuring plan. | The group needed about £50m after C.banner, the Hong Kong-listed owner of Hamleys, pulled out of plans to raise £70m to invest in House of Fraser. The investment was part of a restructuring plan. |
| Most industry experts expected any rescue to involve putting House of Fraser into administration to allow a new investor to buy its most attractive stores without taking on loss-making sites. Plum locations include shops in Glasgow as well as Bluewater in Kent, Manchester, Belfast and Meadowhall in Sheffield. | Most industry experts expected any rescue to involve putting House of Fraser into administration to allow a new investor to buy its most attractive stores without taking on loss-making sites. Plum locations include shops in Glasgow as well as Bluewater in Kent, Manchester, Belfast and Meadowhall in Sheffield. |
| Ashley and other potential bidders, including Philip Day, the owner of Edinburgh Woollen Mill, and the restructuring specialist Alteri were asked for their best offers this week as the group’s lenders considered their options. | Ashley and other potential bidders, including Philip Day, the owner of Edinburgh Woollen Mill, and the restructuring specialist Alteri were asked for their best offers this week as the group’s lenders considered their options. |
| House of Fraser | House of Fraser |
| Retail industry | Retail industry |
| Mike Ashley | Mike Ashley |
| Job losses | |
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