Search

House of Fraser creditors owed millions – but Mike Ashley won’t be paying

PUBLISHED: 16:58 17 August 2018 | UPDATED: 16:58 17 August 2018

House of Fraser creditors were owed close to half a billion pounds when the firm went into administration, according to a report by Ernst and Young (EY). Picture: Antony Kelly

House of Fraser creditors were owed close to half a billion pounds when the firm went into administration, according to a report by Ernst and Young (EY). Picture: Antony Kelly

ARCHANT NORFOLK PHOTOGRAPHIC © 2005

House of Fraser collapsed owing creditors such as Armani, Diesel and Prada almost £500m, new documents have shown.

The department store chain was bought out of administration by Mike Ashley’s Sports Direct last week, but the retail tycoon is not paying suppliers money owed before his rescue.

According to a report from House of Fraser’s administrators at Ernst and Young (EY), trade creditors are owed millions between them, with designer brands such as Versace, Gucci and Prada amongst the biggest names left out of pocket.

EY has estimated that House of Fraser’s unsecured creditors, aside from its employees, which will be transferred to Sports Direct, are owed around £484m.

However, this figure could rise as more creditors send in claims to EY.

A dispute with third-party distributor XPO Logistics over non-payment has led to the closure of House of Fraser’s warehouse and the cancelling of online orders.

Search hundreds of local jobs at Jobs24

Management Jobs

Show Job Lists

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

Insight

Jupiter European Opportunities is a £1bn investment trust which aims to achieve long-term capital growth through investing in economic trends and developing businesses across Europe.

Asbestos remains a real concern, says 
Dan Evans, partner at Cozens-Hardy

Women in Business

cover

Enjoy the
Women in Business
digital edition

Read

Celebrating Success

cover

Enjoy the
Celebrating Success
digital edition

Read

B2B Exhibition

cover

Enjoy the
B2B Exhibition
digital edition

Read

Green 100

cover

Enjoy the Green 100
digital edition

Read

Meet the Team

Mark Shields

Business Editor

|

Chris Hill

Agricultural and Farming Editor

|

Business Most Read

Awards

Norfolk Future 50 EDP Business Awards Green 100