Triumph to support House of Fraser despite debt
today Oct 17, 2018
The firm, which owns the Triumph and Sloggi brands, is keen on continuing its partnership with House of Fraser after shutting all its six UK shops last year, the Evening Standard reported.
This is despite finding itself among the numerous suppliers and unsecured creditors being owed a total of almost £1 billion when House of Fraser fell into administration and was subsequently acquired by Sports Direct in August.
Brands including Ralph Lauren, Kurt Geiger, Phase Eight, Tommy Hilfiger and L’Oréal were separately owed sums from £9.4 million to £0.5 million. But House of Fraser’s new owner Sports Direct has no legal obligation to pay suppliers money owed before its acquisition.
A spokesperson for Triumph told the Evening Standard: “We have recently met with the new owners, Sports Direct, and are working on a new agreement to continue our long-standing relationship with House of Fraser.”
The lingerie company decided to end its UK standalone operation last year to focus on its online channel and wholesale business. Accounts recently filed with Companies House revealed the business’ revenue declined by £2.1 million in 2017, and pre-tax profit fell to £1.2 million from £2.4 million a year earlier.
Sports Direct recently spent £95 million on the freehold of a House of Fraser' building in Glasgow, and has talked about creating a “Harrods of the North”.
Copyright © 2019 FashionNetwork.com All rights reserved.