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
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.