Mike Ashley warns further House of Fraser closures could be on the cards

Mike Ashley has warned that some House of Fraser stores could still close despite his £90m rescue deal.

The billionaire bought the branch less than an hour after it was placed into administration.

And even though the owner of Sports Direct has ambitious plans for the chain he has warned there could be further closures.

House of Fraser has branches in Altrincham, Birkenhead and Carlise as well as the Kendals store in the heart of Manchester.

In the North West House of Fraser employs 274 and in the UK has 17,000 staff across a total 59 stores.

Mike Ashley said: “This is a massive step forward and further enhances our strategy of elevation across the Group.

“This will benefit both House of Fraser and Flannels in the luxury sector.

“We will do our best to keep as many stores open as possible.

“It is vital that we restore the right level of ongoing relationships with the luxury brands.
“Our deal was conservative, consistent and simple.

“My ambition is to transform House of Fraser into Harrods of the High Street.”

Before the takeover Mike Ashley held an 11 per cent stake in the department store chain.

Philip Day, the Stockport born owner of the Edinburgh Woollen Mill brand, was also interested in buying the business.

Mike Ashley has long been a controversial figure thanks in part to his troubled relationship with the fans of Newcastle United – which he owns.

House of Fraser started trading 169 years ago and employs 17,500 people, including 11,500 concession staff.

Its problems came to a head in June when the retailer’s Chinese owners unveiled proposals to close 31 of its 59 leased stores through Company Voluntary Agreements (CVAs).

The board had been trying to push through its restructuring plan while securing new investment from Hamleys owner C.banner, a Chinese fashion business.

C.banner was being lined up to buy a 51 per cent stake in House of Fraser from the department store’s Chinese owner, Sanpower, and invest £70 million into what remains of the business.

But after creditors failed to reach a deal administrators Ernst & Young were called in to run the business.