1. News
August 1, 2018

Sports Direct founder in talks to offer $65.67m for House of Fraser

UK-based speciality retailer Sports Direct founder Mike Ashley has reportedly proposed a rescue bid for department store chain House of Fraser.

UK-based speciality retailer Sports Direct founder Mike Ashley has reportedly proposed a rescue bid for department store chain House of Fraser.

A report by Sky News said that Ashley is in discussions to offer £50m ($65.67m) emergency funding for House of Fraser.

Ashley currently owns an 11% stake in the department store chain, which he acquired in 2014. The remaining majority stake is owned by Chinese conglomerate Sanpower, which was acquired in a £480m deal.

Last month, House of Fraser announced that it will shut down 31 stores, affecting 6,000 jobs.

“House of Fraser announced that it will shut down 31 stores, affecting 6,000 jobs.”

The retailer’s lenders agreed to extend loans during its restructuring efforts through a company voluntary arrangement (CVA), reported The Guardian.

China-based C.banner also agreed to make a £70m investment in the struggling retailer following the successful implementation of CVA, which was approved by creditors in June.

A group of property landlords have also filed a petition in the Court of Session in Edinburgh last month against the British department store chain regarding the implementation of the CVA.

The group claims that they were ‘unfairly prejudiced’ during the implementation of the CVA, and claimed “material irregularities in the implementation of the House of Fraser CVA”, reported The Guardian.