Sports Direct has officially completed the acquisition of House of Fraser for a whopping £90 million, marking a significant milestone in the iconic British department store chain’s tumultuous journey. The move comes on the heels of failed negotiations earlier in the week, prompting the appointment of administrators EY to oversee the process.
The acquisition has been a long time coming for Mike Ashley, the billionaire tycoon with an 11% stake in House of Fraser. Despite facing stiff competition from other potential buyers like Philip Day and Alteri, Ashley emerged victorious in the bidding war, securing the future of the struggling retailer.
Now, the focus shifts to the fate of House of Fraser’s 59 stores and its 17,500 employees. While all stores currently remain open for business, there is uncertainty surrounding the possibility of closures as Ashley contemplates a restructuring plan to revitalize the brand.
The decision to place House of Fraser under administration was a strategic move to facilitate a ‘pre-pack’ administration deal, which allows new owners like Sports Direct to take over the business without being burdened by existing liabilities. This paves the way for a fresh start and a new beginning for the beloved retailer.
As Sports Direct remains tight-lipped about its plans for House of Fraser, CEO Alex Williamson expresses optimism about the brand’s future under new ownership, citing stability and financial strength as key advantages. Chairman Frank Slevin also shares this positive outlook, projecting confidence in the brand’s ability to weather the storm and emerge stronger.
As House of Fraser embarks on this new chapter in its 169-year history, all eyes are on Sports Direct to see how it will navigate the challenges ahead and steer the iconic retailer towards a revitalized and successful future.
For more information on the acquisition of House of Fraser by Sports Direct, visit BBC News and The Guardian.
