Eleventh-hour discussions to save embattled department store chain House of Fraser have fallen through and the company is to appoint administrators.
It said in a statement to the Luxembourg Stock Exchange this morning that discussions with potential investors and creditors have “not concluded in a solvent solution”.
It said: “The directors of the group’s operating companies, House of Fraser Limited, House of Fraser Limited and James Beattie Limited have therefore resolved to seek the appointment of administrators.”
Court hearings today are expected to appoint individuals from Ernst & Young as administrators of each of the companies.
House of Fraser said that progress had been made towards a sale of the company and its assets, and that administrators are expected to continue discussions “with a view to concluding a transaction shortly after their appointment”.
Alex Williamson, chief executive of House of Fraser, said: “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.”
The business will continue trading with all stores and offices as a sale is sought.
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