Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
Saturday 18 August 2018 11:21 am  |  Updated:  Friday 24 May 2019 7:48 pm

House of Fraser owed millions to major brands before collapse

By: Sebastian McCarthy

Add as a preferred source on Google

House of Fraser racked up debts of almost £500m in the run-up to its collapse, owing major designer brands such as Gucci, Armani and Mulberry.

Administrators Ernst & Young (EY) have reported that the chain’s creditors are owed sums totalling hundreds of millions of pounds, with more than 1,000 suppliers set to be out of pocket.

The department store, which has already cancelled all its online orders after a dispute with its third-party logistics company XPO on Friday, has been bought out for £90m by Sports Direct owner Mike Ashley, who hopes to turn House of Fraser into a ‘Harrods on the high street’.

Read more: House of Fraser was almost sold for just £1

However, the retail tycoon has said that he will not pay suppliers any money that was owed before his takeover.

Ashley bought the department store in a "pre-packaged administration", meaning he is allowed to drop certain liabilities through the insolvency process.

Read more: Mike Ashley to turn House of Fraser into 'Harrods of the high street'

Among the range of fashion and beauty brands were owed money was Tommy Hilfiger (owed £3.3m), Barbour (£3m), Mint Velvet (£2.5m), Mulberry (£2.4m) and L’Oréal (£2m).

Pop star Liam Gallaher’s Pretty Green gashion label is also owed roughly £500,000.

 

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Retail

Trending Articles

  • Government intervenes on foreign takeover bids for UK defence firms

  • Wayve hands London private market ‘major boost’ with $85m share sale

  • Mr John Wrottesley Appointed as New General Manager of International Cable Protection Committee (ICPC)

  • Nothing fails to file accounts months after dissolution threat

  • NBA Europe bids fall short of $500m mark for some city franchises

More from City PM

  • Hugo Boss shares soar as Mike Ashley’s Frasers circles

    Retail
    Mike Ashley, founder of Frasers Group Plc. Photographer: Chris J. Ratcliffe/Bloomberg via Getty Images
  • Lex Greensill banned as company director for nine years after multi-billion-pound collapse

    Business
    Lex Greensill speaking at a business conference, wearing a suit and tie, gesturing with his hand while discussing financia...
  • On this day: Britain’s first banking crisis

    Opinion
    Historic illustration of 1754 Canada skyline with St. Pauls Cathedral and surrounding architecture, showcasing 18t...
  • Finimize data: Fees alone won’t win UK retail investors

    Business Wire
  • Associated British Foods toasts approval for £75m Hovis takeover 

    Retail
    Hovis is in talks of a merger with Kingsmill. (Image: Wikimedia Commons)
  • Struggling Pizza Hut snapped up by private equity in $2.7bn deal

    Hospitality
    Pizza Hut restaurant exterior featuring bright red signage and welcoming entrance in a bustling city setting
  • Millions left unclaimed as public awareness gap exposes flaws in class actions

    Legal
    SWR was previously owned by FirstGroup and MTR Corporation, but is now the responsibility of DfT (Department for Transport) Operator. (A South Western train arrives at Clapham Junction. Photo by Jack Taylor/Getty Images)
  • How Young’s is shrugging off hospitality gloom

    Hospitality
    Youngs pub ambiance with patrons enjoying drinks and dining at Smithfield market, capturing the lively London hospitality ...

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Editorial Policy
  • Corrections
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM · Published by CityPM Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
About · Editorial Policy · Corrections · Contact · Privacy