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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 bought by Mike Ashley's Sports Direct for £90m | |
| (about 1 hour later) | |
| Sports Direct, the sportswear chain controlled by Mike Ashley, has swooped on House of Fraser in a £90m rescue deal that includes all of its stores. | |
| In a statement to the stock exchange, Sports Direct confirmed it had bought the retailer for £90m in cash, shortly after it fell into administration this morning. | |
| “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,” it said. | |
| More details of what this means for the group’s 17,000 staff are expected to follow. | |
| 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 |
| Ashley has long wanted to take control of House of Fraser. He bought an 11% stake in 2014, when 89% of the business was sold to the Chinese conglomerate Sanpower in a deal worth £480m. | |
| The Sports Direct founder has considered buying a department store chain for several years. He also has a 29.7% stake in House of Fraser’s rival Debenhams. | |
| House of Fraser appointed accountancy firm EY as administrators on Friday after last-ditch overnight talks with investors and creditors had “not concluded in a solvent solution”. | |
| Events have moved quickly since the retailer told investors on Thursday it needed to raise new funds by 20 August. | |
| 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. |
| 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 | Job losses |
| Sports Direct International | |
| news | news |
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