Sports Direct buys House of Fraser in £90m deal
Shirebrook-based Sport Direct has bought all UK House of Fraser stores in a deal worth £90m.
Earlier today, House of Fraser fell into administration after talks with creditors collapsed.
House of Fraser has 59 stores, including 31 that had been earmarked for closure. The company employs 17,500 people.
Mike Ashley, who owns Sports Direct, already had an 11% share in House of Fraser.
C.banner, a retailer of footwear brands in China, was planning to invest £70m into the firm but cancelled its planned share placing due to falls in its share price. It had agreed in May to buy a 51% stake in House of Fraser.
House of Fraser is one of many UK retailers this year to have been hit by increasing online competition, higher consumer spending, rising labour costs and higher business property taxes; leading to the administration of several high street names including Poundworld, Toys R Us, Maplin.