Mike Ashley's Sports Direct buys the House of Fraser for £90m

[editor]

I'm glad the jobs are saved, but Mike Ashley is such a fucking wanker....

Sports Direct, the sportswear chain controlled by Mike Ashley, has swooped on House of Fraser in a £90m rescue deal that secures 17,000 jobs for the time being.

In a statement to the stock exchange, Sports Direct confirmed it had bought the retailer for £90m in cash, shortly after it fell into administration on Friday morning.

“The group has acquired all of the UK stores of House of Fraser, the House of Fraser brand and all of the stock in the business,” it said.

The House of Fraser department store chain was put into administration after late night talks with its creditors failed to provide a better option.

It is understood that all stores will come under Sports Direct’s control and all staff are being transferred on the same employment terms and conditions. However, Ashley’s plans for the business are not clear and it may be that some stores close in the future.

The addition of House of Fraser to the Sports Direct group will create a new force in high street retailing. Sports Direct also owns the famous London sportswear store Lillywhites and Flannels, a designer fashion chain.

House of Fraser bought by Mike Ashley's Sports Direct for £90m

 

[cupid_stunt]

Well, at least some jobs will be saved, I suspect some stores will still close, as was already planned.

I just hope he doesn't mess the staff around.

 

[Teaboy]

God knows how this will pan out and what he will do with it. Doesn't seem to have any thing in common with Sports Direct so is he going to run it as a standalone business or just asset strip it and keep the handful of decent locations for his 'sports' stores.

 

[Pickman's model]

I just hope he doesn't mess the staff around.

and when all the things had flown out of pandora's box only hope was left somewhat bumped and flattened at the bottom.

 

[Pickman's model]

God knows how this will pan out and what he will do with it. Doesn't seem to have any thing in common with Sports Direct so is he going to run it as a standalone business or just asset strip it and keep the handful of decent locations for his 'sports' stores.

we all know the answer to that one.

 

[sealion]

I just hope he doesn't mess the staff around.

It will be a first if he doesn't.

 

[Fez909]

Surely it's worth more than that? The property alone must be worth more than £90m.

 

[cupid_stunt]

BTW Ashley had an 11% in House of Fraser before today, but also has a 29.7% share in Debenhams, just short of the 30% that would force him into making a take-over bid.

Mike Ashley swoops for struggling Debenhams | This is Money

 

[Fez909]

I, for one, look forward to massive House of Frasier mugs taking over the UK

Normal mugs almost wiped out by aggressive Sports Direct mugs

 

[cupid_stunt]

Surely it's worth more than that? The property alone must be worth more than £90m.

I am sure he got a bloody good deal, but I am not sure what, if any, property they actually own, rather than lease/rent.

Landlords refusing to do a deal with HoF is part the reason they got into so much trouble.

 

[Smangus]

So that's where Newcastle's transfer budget went then...

 

[cupid_stunt]

It will be a first if he doesn't.

That was my thoughts too, after the business, innovation and skills (BIS) select committee looked into Sports Direct.

BIS chairman Iain Wright said that whistleblowers, parts of the media and a trade union had “shone a light” on “extremely disturbing” practices at Sports Direct.

He continued: “The evidence we heard points to a business whose working practices are closer to that of a Victorian workhouse than that of a modern, reputable high street retailer. For this to occur in the UK in 2016 is a serious indictment of the management at Sports Direct and Mike Ashley, as the face of Sports Direct, must be held accountable for these failings.”

Here's Mike Ashley's Record on Rights

 

[cupid_stunt]

And, yes, he seems to have got a bargain...

The price represents a heavy discount for the once-mighty department store.

In the year to 28 January 2017, House of Fraser had assets worth almost £950m. It was bought by Chinese company Sanpower four years ago in a deal that valued the business at £450m.

Watch this space, he could well be looking to have Debenhams next...

Retail observers have even previously suggested that Ashley could merge House of Fraser with Debenhams, in which he holds a stake of just under 30 per cent.

Shares in Debenhams jumped more than three per cent this morning as news of House of Fraser's insolvency emerged.

"This would be an exciting development for the retail sector as it could effectively consolidate the two troubled department store chains into a single offering," said Neil Wilson of Markets.com about the prospect of a combination.

"This appears the only viable solution; combining the operations to reduce overheads and stop competing against each other after a pretty brutal period of sales that has hammered margins."

House of Ashley: Sports Direct confirms House of Fraser acquisition

 

[cupid_stunt]

So that's where Newcastle's transfer budget went then...

Fans are not happy:

It comes less than 24 hours after the summer transfer window slammed shut with Newcastle recording the highest net profit in the league.

Manager Rafa Benitez had been convinced Newcastle would have the capacity to spend more money in the transfer market this summer because of the Premier League money the club has banked.

In actual fact, they spent less than last summer when they were a newly promoted team.

Angry Newcastle fans react as Mike Ashley buys House of Fraser

 

[sealion]

Fans are not happy:



Angry Newcastle fans react as Mike Ashley buys House of Fraser

Tbf it has fuck all to do with Newcastle fans. They got promotion and premiership football and they weren't complaining. Other clubs are chucking millions just to stay in the prem, while Newcastle spent very little for the same outcome.

 

[souljacker]

So that's where Newcastle's transfer budget went then...

They could have bought Ronaldo for that

 

[weepiper]

Store closures ahoy if there's a Debenhams/HofF merger. For example, Edinburgh's Princes Street has a large HofF at one end, Jenner's at the other which is now owned by HofF and carries all the same stock, and a big Debenhams in-between. There's no way all three of those will stay open.

 

[sunnysidedown]

Tbf it has fuck all to do with Newcastle fans. They got promotion and premiership football and they weren't complaining. Other clubs are chucking millions just to stay in the prem, while Newcastle spent very little for the same outcome.

We were in the prem before that cunt took us over, we have been relegated twice under His ownership. We’ve only ever been relegated 6 or 7 times in our entire fucking history.

He has made millions out of NUFC and has systematically failed to put anything back in. Our training facilities have not had a lick of paint since he turned up. He’s made millions out of player sales but constantly undermines managers who want better for the club.

Keegan hounded out. Chris Houghton sacked.

Pardew the pathetic yes man given a fucking 8 year contract ffs.

Rafa, the best manager we could hope to have has had the piss taken out of him by that cunt since he first took the job.

 

[weltweit]

Whatever else he is Ashley at least is a successful retailer, something that HoF probably needs.

 

[Teaboy]

Whatever else he is Ashley at least is a successful retailer, something that HoF probably needs.

But how Ashley has been successful bears no relation to how HoF operate?

Well McDonalds shift lots of food, would you want them to start running fine dining restaurants?

 

[sealion]

We were in the prem before that cunt took us over, we have been relegated twice under His ownership. We’ve only ever been relegated 6 or 7 times in our entire fucking history.

He has made millions out of NUFC and has systematically failed to put anything back in. Our training facilities have not had a lick of paint since he turned up. He’s made millions out of player sales but constantly undermines managers who want better for the club.

Keegan hounded out. Chris Houghton sacked.

Pardew the pathetic yes man given a fucking 8 year contract ffs.

Rafa, the best manager we could hope to have has had the piss taken out of him by that cunt since he first took the job.

Still in the prem when no club has a divine right to be, big crowds, all owners are at clubs to make millions.

 

[weltweit]

But how Ashley has been successful bears no relation to how HoF operate?

You make a good point, but how HoF presently operate is not sustainable.
Something has to change.

I was interested that it went bust and then he bought it, (the same day) how does that work?

Well McDonalds shift lots of food, would you want them to start running fine dining restaurants?

Perhaps there is less need for fine dining than people think.

I heard an interview on the radio earlier where a punter was asked if they shopped in HoF and they replied yes, how often they were asked, once every six months came the reply.

 

[Nine Bob Note]

Surely it's worth more than that? The property alone must be worth more than £90m.

Nope. £90m definately. Not a penny more.

 

[Fez909]

Nope. £90m definately. Not a penny more.

Is there anything this man can't make massive?

I'm starting to like him

 

[Teaboy]

Is there anything this man can't make massive?

NUFC's end of season point tally?

 

[cupid_stunt]

I was interested that it went bust and then he bought it, (the same day) how does that work?

As with Debenhams, he had a share-holding, and has been circling for some time, waiting for the right moment to pick over the bones, like the vulture he is.

 

[sunnysidedown]

Still in the prem when no club has a divine right to be, big crowds, all owners are at clubs to make millions.

We’re still in the prem by the skin of our teeth (thanks to Rafa) otherwise we would be down once again due to Ashley’s cowboy gambling.

The bloke isn’t just making a profit out of the football club, he is using it as a vehicle to finance his other purchases while sucking the fucking life out of NUFC.

 

[alcopop]

Surely it's worth more than that? The property alone must be worth more than £90m.

They are leases, not freeholds

 

[sealion]

We’re still in the prem by the skin of our teeth (thanks to Rafa) otherwise we would be down once again due to Ashley’s cowboy gambling.

The bloke isn’t just making a profit out of the football club, he is using it as a vehicle to finance his other purchases while sucking the fucking life out of NUFC.

Thats how it is for most clubs in the prem. The glaziers do the same at united, Do you think Newcastle should be challenging for the title or a european place?

 

[sealion]

As with Debenhams, he had a share-holding, and has been circling for some time, waiting for the right moment to pick over the bones, like the vulture he is.

I think he's a horrible cunt but that's what buisness men do. Don't you want to buy things at the lowest possibe price?