House of Fraser has been sold to the Sports Direct group for £90 million, just hours after being put into administration, meaning jobs at Cheltenham’s Cavendish House branch are safe, for now.
The firm announced on Friday 10 August 2018 that creditors had failed to secure a sale with interested investors, and had appointed administrators, however in a statement from the administration firm EY, it has been confirmed that Sports Direct has completed a sale of ‘substantially all of the group’s business assets.’
House of Fraser confirmed back in June that it would close 31 of its stores, including the Cirencester branch, but Cavendish House in Cheltenham would remain open.
Today’s administration announcement left the future of jobs in Cheltenham uncertain, but the following purchase by Sports Direct group is good news for the firm’s 5,900 staff and additional 10,100 staff employed by concessions.
Alan Hudson, joint administrator with EY said: “We have worked very closely with management, its advisors and creditors in recent weeks and are pleased that we have been able to successfully conclude a sale of the business in short timescales which preserves as many of the jobs of House of Fraser employees as possible.
‘It was a challenging transaction to achieve in such a short period of time which will ensure continuity of the business and preserve the goodwill. We hope that this will give the business the stable financial platform that it requires to flourish in the current retail environment.’
Alex Williamson is chief executive of House of Fraser: ‘An acquisition of the 169-year-old retail business will see House of Fraser regain stability, certainty and financial strength.’
