House of Fraser is said to be in line for a £15m cash injection from its Chinese owner Sanpower, as it continues to face concerns about its future.
Despite the recent announcement that Sanpower, which currently owns 89% of House of Fraser, is set to sell a majority 51% stake to Chinese tourism development company Wuji Wnhua, the Guardian reports that the £15m investment from Sanpower could be made as early as this week.
A spokesperson for Sanpower confirmed to the Guardian that more money will be invested into House of Fraser via Nanjing Cenbest, Sanpower’s Shanghai-listed subsidiary.
“We at Sanpower continue to support House of Fraser as it embarks on a year of significant transformation in 2018,” the spokesperson said. “Sanpower, through the listed company, has invested £45m in House of Fraser and plans to inject further capital.”
The news comes after a series of challenging weeks for the retailer. Over the weekend reports emerged that House of Fraser was holding funding talks with specialist lenders as it seeks to fund a turnaround in the business.
On Monday it was also revealed that some of House of Frasers suppliers have put planned arrangements “on hold” amid continuing concerns over the department store’s future. Accountacy firm EY has been drafted in to advise lenders and Rothschild has been appointed to oversee the company’s debt refinancing.