House of Fraser set to fall into administration

House of Fraser is set to fall into administration today, the company has said.

The retailer said “significant progress has been made” in reaching a sale of the group’s business and assets.

EY, which is expected to be appointed administrators today, is expected to continue those discussions in hopes of reaching a deal “shortly after their appointment”.

Alex Williamson, chief executive of House of Fraser, said: “We are hopeful that the current negotiations will shortly be concluded.

“An acquisition of the 169-year-old retail business will see House of Fraser regain stability, certainty and financial strength.

“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 advisors 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.”

House of Fraser chairman Frank Slevin said: “This has been an extraordinarily challenging six months in which the business has delivered so many critical elements of the turnaround plan.

“Despite the very recent termination of the transaction between Cenbest and C.Banner, I am confident House of Fraser is close to securing its future.”

Back in June House of Fraser announced that 31 stores would be closing, impacting around 6,000 jobs.

The stores in Yorkshire that are set to close under the Company Voluntary Arrangement, which will require approval from creditors who will make their decision on June 22, are Grimsby, Doncaster, Hull and Skipton.