Supplier joins growing calls for investigation into House of Fraser collapse
Mike Ashley’s calls for an insolvency investigation into House of Fraser’s former directors were backed by one of the department store’s major suppliers today.
Tea Terrace boss Ehab Shouly told the Sunday Times that House of Fraser’s erstwhile bosses withheld vital information about the company prior to its collapse last month.
One source close to the matter told City PM that there are a number of similar suppliers which support the new owner’s calls for an investigation.
Both the former chairman Frank Slevin and former chief executive Alex Williamson have faced intense pressure over the debts that totalled more than £880m when the firm went bust last month.
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The comments come a week after Mike Ashley, who bought House of Fraser out of administration for £90m, said that the demise of the company should be "fully investigated".
XPO Logistics, which operates two warehouses that supply House of Fraser, has been holding crisis talks with billionaire retailer Ashley following the buyout, amid disputes over debt left behind by the previous owners.
Ashley said: "I believe that XPO and others were totally misled by Frank Slevin and the House of Fraser board."
Administrator EY is set to begin talks with members of the department board's new team later in the week to discuss a number of potential issues relating to the board and events leading up to House of Fraser’s collapse.