UK retailer House of Fraser set to appoint administrators - BBC (updated)

C banner International Holdings

10/08/2018 07:51

(Adds detail)
    LONDON, Aug 10 (Reuters) - British department store retailer
House of Fraser will seek the appointment of administrators on
Friday after negotiations with its investors and creditors
failed to conclude in a "solvent solution", the BBC reported.
    The move into administration, a form of creditor protection,
puts up to 17,000 jobs at risk and means the group, whose
history stretches back to 1849, could join a growing line of UK
retail casualties.
    A string of British store groups have either gone out of
business or announced plans to close shops this year as they
struggle with subdued consumer spending, rising labour costs,
higher business property taxes and growing online competition.
    House of Fraser's possible demise follows the collapse this
year of Toys R Us UK, electricals group Maplin, drinks
wholesaler Conviviality and discount retailer Poundworld.
    House of Fraser said in June it needed to shut 31 of its 59
stores and make up to 6,000 people redundant to survive, but
that rescue programme was thrown into doubt after Chinese group
C.banner  1028.HK  pulled out of a plan to inject fresh equity.
    The retailer's current owners are Nanjing Cenbest, part of
China's Sanpower Group  SPGC.UL , which paid 480 million pounds 
($614 million) for an 89 percent stake in 2014, while Mike
Ashley's Sports Direct  SPD.L  owns 11 percent.
($1 = 0.7817 pounds)

 (Reporting by James Davey; editing by Sarah Young)
 ((sarah.young@thomsonreuters.com; +44 20 7542 1109; Reuters
Messaging: sarah.young.thomsonreuters@reuters.net))