NEWS

House of Fraser handed £30m by Chinese owner

Published on: 3rd April 2018

Chinese owner is supporting the business in an increasingly hostile retail environment.

Sanpower Group, chaired by billionaire Yuan Yafei, injected £15m into House of Fraser last week, on top of another £15m it gave to the company in September last year.

Yafei has voiced his intention to keep supporting House of Fraser after it suffered a drop in sales over the crucial Christmas period. Yafei handed the money to House of Fraser through Nanjing Cenbest, the Shanghai-listed subsidiary of Sanpower.

House of Fraser, which was bought by Sanpower three years ago, is in talks with landlords about reducing the cost of its property portfolio to save on its £140m rent bill. The chain, which employs 6,000 people, has also discussed its £400m debt pile with turnaround firm Alteri.

Questions were raised over Sanpower’s commitment to House of Fraser when it emerged the company was in talks with Wuji Wenhua, a Chinese leisure company, about offloading a 51 per cent stake in the business. There are now multiple suitors involved in talks with Sanpower, although no decisions have yet been made.

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