// House of Fraser has extended its administration for a further 12 months
// Sports Direct labelled its problems as “nothing short of terminal in nature”
// Mike Ashley acquired House of Fraser for £90m in August 2018 via a pre-pack administration
House of Fraser has extended its administration for a further 12 months, just weeks after owner Sports Direct labelled its problems as “nothing short of terminal in nature”.
The department store’s creditors have now approved another year of administration, ending August 10 next year.
Later this week, documents on House of Fraser’s progress, and a continued turnaround plan is expected to be released by administrators EY.
Sports Direct tycoon Mike Ashley acquired House of Fraser for £90 million in August 2018 through a pre-pack administration, and vowed to transform the retailer into the “Harrods of the high street”.
However, Sports Direct’s annual results last month painted a different picture.
In the report Ashley said: “Our acquisition of House of Fraser has led to significant uncertainty as to the future profitability of the group as a whole, albeit not impacting the going concern assessment of the group.
“There are significant operational and investment issues we are trying to rectify based on the appalling mismanagement of House of Fraser, prior to its acquisition by the Sports Direct Group, that led to its downfall.”
Further House of Fraser store closures are expected later this year.