The challenge comes from Sports Direct, which owns 11 percent of House of Fraser. Photo credit – Sports Direct
Legal action over C.banner House of Fraser bid
British retailer Sports Direct has launched legal action in the United Kingdom over corporate plans at House of Fraser.
As we reported last week, a Chinese company has agreed to invest new funds in iconic British store House of Fraser to reinvigorate the firm.
Inevitably, however, the deal will see some of the company’s poorly performing sites close down.
Sports Direct, which owns 11.1 percent of the department store, claims that is hasn’t been party to the plans.
It now has a High Court writ saying that Mike Ashley, owner of Sports Direct, should be shown them.
C.banner, the Chinese company that owns Hamley’s toy stores and MIO, has been revealed as the new buyer of a 51 percent stake in House of Fraser from previous owner Sanpower was in the process of selling the firm to another Chinese buyer.
The agreement will see at least £70 million of cash injected into the department chain.
However, an unknown number of the group’s 59 stores will be shut, and rent at other sites renegotiated.
House of Fraser lost over £40 million in 2017.