The UK-based ailing retailer, House of Fraser recently entered administration, as talks with its creditors didn’t come to conclusion. It was soon snapped up by the British retailer Sports Direct for £ 90 million.
In a statement issued, Sports Direct affirmed the media that it has bought all of the UK stores of the retailer, along with the whole brand and the stock in the business.
Notably, House of Fraser is home to around 17,500 employees, out of which 6,000 jobs were already in danger, as the retailer failed to withstand the competition from e-commerce retailers and the uncertainty over Brexit.
Alan Hudson, Joint Administrator, EY said that this acquisition by Sports Direct will preserve many House of Fraser employees from losing their jobs. “We hope that this move will provide the business with the steady financial platform that it needs to flourish in the current retail environment,” he said.
Mike Ashley, Founder, Sports Direct elucidated on the development and said that the retailer will try and keep as many outlets open as possible. “Our objective is to transform House of Fraser to Harrods of the High Street,” he added.
According to the analysts, this is a big move and a lot of people will be feeling relieved that House of Fraser is not vanishing from the High Street all of a sudden.
It remains to be seen how House of Fraser fares under its new owner and how Sports Direct manages to deal with the ailing business of the retailer.
Bharat Tex Special Report 2026 
