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HoF held 'funding crisis talks' as advisers called in

Embattled department store chain House of Fraser has reportedly held funding talks with specialist lenders amid continuing tough trade of the high street.

The retailer is said to have asked for up to £40m from turnaround firms such as Alteri Investors, which is backed by the US hedge fund Apollo Global Management, The Sunday Times reports.

The talks are thought to have ended two weeks ago, without any deal.

A spokeswoman said: “House of Fraser is a privately owned business. We have the full financial support of our shareholders.”

House of Fraser has £400m of borrowings in a mixture of bonds and bank debt.

Meanwhile the company’s lenders have appointed business consultancy EY to advise on the future of the business.

A syndicate of banks, understood to include HSBC and Industrial and Commercial Bank of China, appointed EY earlier this week, as first reported by Sky News.

Earlier this month, HoF’s controlling Chinese shareholder, Nanjing Xinjiekou Department Store, said it would sell 51% of HoF to Chinese tourism group Wuji Wenhua.

Readers' comments (2)

  • If HOF had more funding it would not make a scrap of difference. It has never been particularly well run and hasn't had the foresight to change the business with the times. It is a dinosaur, though it is not alone in that respect and does not merit or attract serious investment.

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  • darren hoggett

    On this evidence alone, HOF will hit the buffers sooner rather than later. £40M does not seem remotely sufficient and ultimately futile, as it will not solve the fundamental issues of the self inflicted wounds that got them into this situation in the first place.

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