House of Fraser had debts of close to £1bn when it collapsed, with more than half owed to suppliers ranging from Polo Ralph Lauren and Mulberry to Liam Gallagher’s Pretty Green fashion label.
The department store hasclosed down its website, cancelled orders and reimbursed customers after a dispute with its warehouse operator, XPO, to whom it owed more than £30m when it went into administration last Friday.
More than 1,000 suppliers will not receive any money from the company’s administrator, EY, which was called in ahead of the sale of the retailer to Mike Ashley’s Sports Direct for £90m.
Sports Direct is in discussions with suppliers about potential deals, but has so far only promised to cover money owed after Ashley bought the business.
The purchase price went towards paying off House of Fraser’s banks and bondholders, which together were owed about £400m.
XPO is the biggest trade creditor followed by Ralph Lauren, which was owed £9.4m, the footwear retailer Kurt Geiger, which was owed £4.9m, and the women’s fashion brand Phase Eight, which was owed £3.4m. The details of the debts were revealed in a report from EY.
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