House of Fraser collapse to leave Mulberry, Gucci, Prada and more millions out of pocket
Brands including Mulberry, Giorgio Armani, Gucci and Prada could be left out of pocket following the collapse of House of Fraser.
House of Fraser suppliers are likely to be left out of pocket / Creative Commons image
According to documents from administrators EY, House of Fraser suppliers - including the above brands - are owed £484m from the chain’s total debt of £884m.
Also listed is the warehouse operator at the centre of an ongoing dispute, XPO Logistics, which lead Sports Direct owner Mike Ashley to close the House of Fraser website on Wednesday (15 August).
Fashion brand Jigsaw has cut ties with 20 House of Fraser concessions, with Karen Millen - which is owed more than £950k - also believed to be removing stock.
Mulberry is owed £2.4m, with All Saints waiting on close to £1.8m and Giorgio Armani out £1.6m.
EY has confirmed three were six bidders for House of Fraser, four of which offered between £40m and £49m. One bidder offered £1 to acquire the group on a solvent basis, later proposing to acquire House of Fraser and its assets following any insolvency for £100m before pulling out.
Ashley’s Sports Direct swooped in with £90m to save the business on Friday 10 August. Ashley has vowed to keep most of House of Fraser’s 59 stores open.
Following the deal, The Drum took a closer look at what the rescue deal means for the House of Fraser brand.
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