Chinese group C.banner has announced that it is not proposing to follow through with its acquisition of a 51 per cent stake in House of Fraser from Sanpower. The Chinese business was to have made a £70 million investment in the department store chain but had made this conditional on the full approval of creditors for the House of Fraser’s CVA plan. It is understood that C. banner is itself facing financial problems due to a fall in its share price.
This leaves House of Fraser management staging talks with a number of parties to secure alternative investment against a backdrop of mounting pressure if its to meet its quarterly rent in September and secure sufficient stock for peak trading.
Potential “saviours” include Alteri Investors and Mike Ashley, according to reports.
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