House of Fraser owed millions to major brands before collapse August 18, 2018 House of Fraser racked up debts of almost £500m in the run-up to its collapse, owing major designer brands such as Gucci, Armani and Mulberry. Administrators Ernst & Young (EY) have reported that the chain’s creditors are owed sums totalling hundreds of millions of pounds, with more than 1,000 suppliers set to be out of [...]
Administration filings tumble despite major retail insolvencies August 18, 2018 The number of firms falling into administration fell dramatically in the second quarter of the year, despite a series of high profile insolvencies hitting the headlines in recent months. A total 302 companies entered administration in the three months from April to June, marking a 13 per cent fall from the previous quarter. However, the figure [...]
House of Fraser could have been sold for £1, EY letter reveals August 17, 2018 Beleaguered department store House of Fraser could have been sold for just £1 ahead of its acquisition by billionaire Mike Ashley's Sports Direct brand, administrators EY revealed today. The retailer saw a £14.6m drop in profits in the 13 weeks to the end of April, four months before it entered administration. Turnover also declined 7.7 per cent [...]
Mike Ashley to turn House of Fraser into ‘Harrods of the high street’ after £90m acquisition August 10, 2018 Mike Ashley has promised to turn House of Fraser into the "Harrods of the high street" after buying the company for £90m. Sports Direct issued a statement confirming that the acquisition includes all the UK stores, the brand and all the stock. It comes after the department store chain announced this morning that it is [...]
Mike Ashley’s Sports Direct confirms House of Fraser acquisition | City A.M. August 10, 2018 Mike Ashley’s Sports Direct has bought House of Fraser for £90m. The acquisition includes all the UK stores, the brand and all the stock. It comes after the department store chain announced this morning that it is to appoint administrators after it failed to find a solvent solution. The price represents a heavy discount for [...]
Regulation didn’t wipe out Wonga – losing its reputation did August 7, 2018 WHEN PAYDAY LENDER Wonga launched in 2007, it was tipped to become a £1bn success story. Today, the company is worth just £23m and has only managed to avoid insolvency thanks to a last-minute £10m boost from investors. So what went wrong? Ultimately, it comes down to reputation. Wonga's public image first took a [...]
Retailers under pressure as the online revolution causes profit warnings to double to seven-year high | City A.M. July 22, 2018 The number of FTSE-listed companies issuing profit warnings rose by 13 to 58 in the second quarter, an increase of 29 per cent compared to the same period last year, according to an EY report published today. The rise was led by the retail sector of the FTSE index, where profit warnings for the first [...]
Demand for London retail space slumps as high street woes deepen | City A.M. July 19, 2018 Demand for retail space in London has dived as woes around high street closures grow, according to a highly-regarded survey out today. Roughly 68 per cent more chartered surveyors in London’s retail sector noted a quarterly fall, rather than a rise, in demand for space in the capital, reaching levels not seen since 2008. The [...]
MPs call for banks to pay for new tribunal system to settle disputes for small businesses | City A.M. July 12, 2018 A cross-party group of MPs has called for a new tribunal system for small firms to challenge big banks after a string of scandals of companies being driven to the wall by lenders. A new Financial Services Tribunal should be established to help resolve disputes between small firms and banks, a report published today by [...]
House of Fraser landlords, lawyers and property advisers slam ‘disappointing’ CVA vote June 22, 2018 Landlords have been left disappointed after House of Fraser's CVA was passed today, with some even considering legal action. Creditors threw a lifeline to the department store chain by approving rescue plans that will result in half of the retailer's sites being closed. Possible legal challenge Two advisers to a group of the affected landlords [...]