Executive Summary

In this report, we briefly outline the failure of House of Fraser under the ownership of Sanpower and note the key events that led to its recent acquisition by Mike Ashley’s Sports Direct.

• Mike Ashley, owner of Sports Direct, acquired House of Fraser for £90 million on August 10, 2018.
• House of Fraser’s total liabilities amounted to £836 million in the year ended January 2017.
• House of Fraser was acquired by Sanpower in 2014, and shortly thereafter sales growth softened and then turned negative. Sanpower’s first cash injection came only in late 2017.
• Ashley has pledged to keep 47 of 59 existing stores open.