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House of Fraser in talks with Mike Ashley for 50 billion pounds funding deal


House of Fraser in talks with Mike Ashley for 50 billion pounds funding deal

Troubled departmental store chain House of Fraser is said to be in talks
with Sports Direct’s Mike Ashley to seek funding boost worth 50 million
pounds (65.8 million dollars), reports Sky News.

Last month, the company’s voluntary arrangement (CVA) proposals were
approved by the company’s creditors, which included closure of 31 of its 59
department stores, resulting in about 6,000 job losses. In absence of funds
ahead of the crucial Christmas trading, the only other alternative left for
the business, according to industry experts, is to plunge into
administration.

Citing a letter sent by Sports Direct to House of Fraser on July 2,
2018, the report added that Rothschild, which is advising House of Fraser
was approached by Ashley offering to provide a funding injection, in the
form of a loan or equity. The development follows after C.Banner, Chinese
owner of toy store Hamleys decided to delay its 70 million pounds (92
million dollars) investment in House of Fraser.

In May, ahead of its takeover bid, C.Banner said in a statement that
House of Fraser witnessed a loss of 43.9 million pounds for the 12 months
to December 31, 2017 against a profit of 1.5 million pounds, a year before.
It added that the departmental store chain saw its sales fall by 6.3
percent to 787.8 million pounds.

Picture:Facebook/House of Fraser



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