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Clothing retailer Sports Direct International (LON:SPD) has purchased department store chain House of Fraser out of administration for a £90 million cash consideration. The firm has bought all of House of Fraser’s branches, its branding, and stock.
At the date of House of Fraser’s last set of statutory accounts, it had gross assets £94.36 million and profits of £14.7 million.
Chief executive Mike Ashley commented: “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 the Harrods of the High Street“.
Shares in Sports Direct fell by 3.20p to 403.50p (as of 15:30 BST).