House of Fraser now calls in Administrators
sarah1972
Posts: 18,890 Senior Ambassador
https://www.bbc.co.uk/news/business-45140874
Department store chain House of Fraser is to appoint administrators after giving up the fight to save the business.
In a statement, it said that talks with investors and creditors had "not concluded in a solvent solution".
House of Fraser employs 17,500 people, including 11,500 concession staff.
Its fate was sealed earlier this month, when Chinese firm C.banner pulled out of a rescue deal that would have brought much-needed investment.
House of Fraser said administrators Ernst & Young had confirmed that the business would continue trading, including all stores and offices, while they attempted to complete a sale.
All 59 shops are set to open as usual on Friday, including 31 that have already been earmarked for closure as part of a restructuring agreement.
House of Fraser: Five things that went wrong
The firm said: "Significant progress has been made towards completing a sale of the group's business and assets.
"The proposed administrators are expected to continue to progress those discussions with a view to concluding a transaction shortly after their appointment."
Chief executive Alex Williamson said: "We are hopeful that the current negotiations will shortly be concluded. An acquisition of the 169-year-old retail business will see House of Fraser regain stability, certainty and financial strength.
"In the two weeks since the Cenbest and C.banner transaction ceased, the directors have brought forward a number of potential buyers and the group's financial advisers have run a comprehensive M&A process to identify and then develop other third-party interest that has culminated in the senior secured creditors leading negotiations with parties at a critical pace."
Chairman Frank Slevin said: "This has been an extraordinarily challenging six months in which the business has delivered so many critical elements of the turnaround plan.
"Despite the very recent termination of the transaction between Cenbest and C.banner, I am confident House of Fraser is close to securing its future.
Department store chain House of Fraser is to appoint administrators after giving up the fight to save the business.
In a statement, it said that talks with investors and creditors had "not concluded in a solvent solution".
House of Fraser employs 17,500 people, including 11,500 concession staff.
Its fate was sealed earlier this month, when Chinese firm C.banner pulled out of a rescue deal that would have brought much-needed investment.
House of Fraser said administrators Ernst & Young had confirmed that the business would continue trading, including all stores and offices, while they attempted to complete a sale.
All 59 shops are set to open as usual on Friday, including 31 that have already been earmarked for closure as part of a restructuring agreement.
House of Fraser: Five things that went wrong
The firm said: "Significant progress has been made towards completing a sale of the group's business and assets.
"The proposed administrators are expected to continue to progress those discussions with a view to concluding a transaction shortly after their appointment."
Chief executive Alex Williamson said: "We are hopeful that the current negotiations will shortly be concluded. An acquisition of the 169-year-old retail business will see House of Fraser regain stability, certainty and financial strength.
"In the two weeks since the Cenbest and C.banner transaction ceased, the directors have brought forward a number of potential buyers and the group's financial advisers have run a comprehensive M&A process to identify and then develop other third-party interest that has culminated in the senior secured creditors leading negotiations with parties at a critical pace."
Chairman Frank Slevin said: "This has been an extraordinarily challenging six months in which the business has delivered so many critical elements of the turnaround plan.
"Despite the very recent termination of the transaction between Cenbest and C.banner, I am confident House of Fraser is close to securing its future.
I’m a Senior Forum Ambassador and I support the Forum Team on Competitions Time, Shopping & Freebies boards, Employment, Jobseeking & Training boards If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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There have been rumblings of this happening for about 2 to 3 months.
Yet another nail in the coffin of the high street. (IMO)Breast Cancer Now 2022 100 miles October 100 / 100milesSun, Sea
2024 7/28 lbs to go.0 -
I have 50.00 of vouchers i plan to use tomorrow will they still be accepted?0
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I have 50.00 of vouchers i plan to use tomorrow will they still be accepted?
Yes, use it quickly https://www.moneysavingexpert.com/news/shopping/2018/08/house-of-fraser-falls-into-administration?utm_content=1533893095&utm_medium=social&utm_source=multipleI’m a Senior Forum Ambassador and I support the Forum Team on Competitions Time, Shopping & Freebies boards, Employment, Jobseeking & Training boards If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0 -
Unfortunately we have unused vouchers that we received as a wedding present. HOF are refusing to take these this morning.
Seemingly the staff were briefed before opening that they were not to accept them which is clearly different to what they have told the team/MSE journalist in the above link.0 -
Unfortunately we have unused vouchers that we received as a wedding present. HOF are refusing to take these this morning.
Seemingly the staff were briefed before opening that they were not to accept them which is clearly different to what they have told the team/MSE journalist in the above link.
Thanks for letting us know, I have messaged the forum team to make them aware.I’m a Senior Forum Ambassador and I support the Forum Team on Competitions Time, Shopping & Freebies boards, Employment, Jobseeking & Training boards If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0 -
Looks like its been bought by Mike Ashley [sports direct owner ]0
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Hi,
I managed to use mine online this afternoon, they were refused this morning, but are now taking them . they couldn't confirm when I messaged the re instore use.0 -
So Fat Mike has taken them over which is good news for most of the staff.....but its a bit like selling your soul to the devil:eek:0
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Unfortunately we have unused vouchers that we received as a wedding present. HOF are refusing to take these this morning.
Seemingly the staff were briefed before opening that they were not to accept them which is clearly different to what they have told the team/MSE journalist in the above link.
try again now online! I managed to use mine, but the person I spoke to couldn't confirm that they were accepting them in store!0 -
It went through online after half 2. Will see if goods appear. Just chose anything in the hope that physical products will be easily exchanged for other physical products in store.0
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