House of Fraser could receive £50m Sports Direct investment
Sports Direct could lend House of Fraser up to £50m to prevent its collapse.
Sky News first reported that the sports chain, which owns 11% of House of Fraser, was in talks with the department store chain’s advisors. A £70m investment from the Chinese owner of Hamleys has been delayed while the chain’s CVA is challenged in the courts by landlords which claim it is unfair.
Sports Direct wrote to Hosue of Fraser saying it ‘would like to look at making an alternative offer,’ and was ‘willing to structure a transaction on similar terms (subject to due diligence to confirm the level of investment/cash injection required).’
It added that it had cash resources available for investment and the ability to support HoF in areas such as ‘warehousing, online sales and the running of the business generally.’