House of Fraser poised to appoint administrators

House of Fraser administration

Around 17,000 staff were told they would be transferring to Sports Direct as the businessman declared his aim to make House of Fraser the "Harrods of the high street", keeping as numerous 59 stores as possible open.

House of Fraser is set to fall into administration today, the company has said.

Back in June House of Fraser announced that 31 stores would be closing, impacting around 6,000 jobs.

Murray, 28, who was put in charge of Sports Direct's property in 2015, is likely to be at the forefront of making deals for the stores, which are expected to involve rent cuts, and setting up Sports Direct or Flannels outlets in the less salubrious locations.

The first was lodged on Thursday and the second, worth £100million, was tabled shortly after the retailer went into administration early on Friday.

"Given the success of luxury department stores like Selfridges and Harrods, Ashley may attempt to replicate their model using House of Fraser's locations, however it is questionable whether the high end price points would appeal nationwide, particularly given that London-based department store retailers have benefited from tourism".

Sports Direct boss Mike Ashley has reportedly agreed to pay £90million for the chain - which includes an Aylesbury Friars Square Shopping Centre store which was already scheduled for closure.

Day also offered to shoulder House of Fraser's pension obligations - but his proposals were rejected.

'Our deal was conservative, consistent and simple.

The most recent crisis began when C.banner, the Chinese owner of Hamleys toy store, pulled its investment.

Prior to its collapse, Mr Ashley had held an 11 per cent stake in the department store chain.

A string of United Kingdom retailers have either gone out of business or announced plans to close shops this year, as they struggle with subdued consumer spending, rising labour costs and higher business property taxes as well as growing online competition, particularly from Amazon.

Shadow business secretary Rebecca Long-Bailey said Mr Ashley was "notorious" for Sports Direct's "poor treatment" of workers.

"I think House of Fraser has a reasonably good future with this guy". "Nevertheless, this is a part of the industry that is under a huge amount of pressure".

The advent of the internet has had an adverse influence on traditional brick and mortar stores, with digital retailers like Amazon dealing a body blow from which very few stores have recovered.

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