House of Fraser collapse adversely affects Oasis

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House of Fraser
// House of Fraser collapse affected Oasis & many others who held concessions at the department store
// The collapse had a £5m impact on Aurora Fashions Group’s earnings
// Since the collapse, Coast fell into administration and was acquired by Karen Millen

Oasis’ parent company Aurora Fashions Group has said House of Fraser’s collapse adversely affected its annual results.

The fashion retailer is among many others such as Pretty Green, Office, Mulberry, Ted Baker and Quiz to have been impacted by the department store’s administration due to their concessions.

House of Fraser’s administration had a £5 million impact on Aurora Fashions Group’s earnings, partly blaming it for a £10 million increase in pre-tax loss to £39.9 million.

Although House of Fraser’s new owner has promised payment for the sale of all goods from the date of acquisition for Aurora Fashions, it is “not possible at this stage to estimate whether any of the pre-existing debt is recoverable”.

Meanwhile, revenues for the year ended February 24 last year increased by £2 million to £544.6 million.

House of Fraser collapsed into administration in early August and put around 17,000 jobs at risk in what was believed to become the biggest high street casualty since the fall of BHS.

Just hours after the announcement, Sports Direct bought House of Fraser out of administration for £90 million, which meant Mike Ashley – who previously owned an 11 per cent stake in House of Fraser before the deal – beat competition from rival Philip Day, the billionaire owner of the Edinburgh Woollen Mill Group, in acquiring the department store.

Since then, Coast fell into administration and was acquired by Karen Millen in a pre-pack administration, saving its UK concession portfolio, online business and franchise stores.

However, its standalone stores and international concessions were not included in the deal and have since closed.

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