Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

 Menu 

House of Fraser creditors owed £484m

17 August 2018By

Full screenHof ww

House of Fraser’s unsecured non-preferential creditors, including suppliers, are thought to be owed around £484m, a report from administrator EY has shown.

More from: House of Fraser enters administration

Brands are owed millions of pounds by the retailer but EY has said the amounts owed will not be paid, as only £600,000 will be available to be distributed among all the unsecured creditors under the insolvency legislation.

Among the fashion brands and suppliers owed the most are:

  • Ralph Lauren’s Polo UK: £9.4m
  • Kurt Geiger: £4.9m
  • Tommy Hilfiger: £3.4m
  • Phase Eight: £3.4m
  • Mint Velvet: £2.6m
  • Mulberry: £2.4m
  • AllSaints: £1.8m
  • Giorgio Armani: £1.6m
  • Hobbs: £1.6m
  • Lacoste UK: £1.4m
  • Warehouse: £1.4m 
  • Hallet Retail: £1.3m
  • Hugo Boss UK: £1.2m
  • Diesel: £1.1m

The full list of creditors and amounts owed can be found here: https://www.ey.com/Publication/vwLUAssets/EY-hof-joint-administrators-statement-of-proposals/$FILE/EY-hof-joint-administrators-statement-of-proposals.pdf 

Logistics firm XPO, which stopped accepting goods and processing deliveries for HoF last week, causing the retailer to take its website off line and cancel all undelivered orders, is owed £30.4m.

Sports Direct paid £90m to acquire HoF, its stock and stores from the administrator last week in a pre-pack administration deal. HoF is not legally obliged to make payments for any goods sold before the transaction, leaving suppliers and concession operators facing big debts.

Suppliers told Drapers the shortfall could push some smaller business over the edge.

Drapers also revealed that several concession holders have removed stock from House of Fraser stores, while some brands that are sold in HoF stores via wholesale agreements are understood to be reviewing “retention of title” clauses.

Tags

View comments (11)

You might also like...

Readers' comments (11)

  • Anonymous17 August 2018 4:23 pm

    Some big numbers but the smaller suppliers will be hardest hit. Unless Ashley can do deals it is likely many brands will walk away. Leaving flannels and sports direct to fill the empty spaces.

    Unsuitable or offensive? Report this comment

  • Anonymous17 August 2018 8:38 pm

    This only adds up to c£70 million.

    What about the other £400 plus million?

    Unsuitable or offensive? Report this comment

  • Anonymous17 August 2018 10:38 pm

    Possibly stupid. But is there an online version of this report that lists everything owed? If so where can it be found? Thank you!

    Unsuitable or offensive? Report this comment

  • Anonymous18 August 2018 8:06 am

    Likewise, can I obtain the EY report?

    Unsuitable or offensive? Report this comment

  • Anonymous18 August 2018 10:34 am

    Regarding the difference between the £70m and £400m suspect HMRC will take a massive hit, employees , landlords, local councils for business rates, plus all the non fashion creditors, hundreds of smaller suppliers , etc etc will all add up.

    Unsuitable or offensive? Report this comment

  • Anonymous18 August 2018 12:08 pm

    But again, why did these brands get so 'in the hole' with a company that was always going to hit the wall? Where all the brands listed so naive?

    Unsuitable or offensive? Report this comment

  • Anonymous18 August 2018 6:30 pm

    Some ill informed comments on here... clearly made by people that have little grasp of business. Rear view mirrors are amazingly accurate.. however, if all the "naive" brands had acted in the way suggested, HoF would have gone bust a long time ago and the same "naive" brands would have forgone significant profits in exchange for security... however I suspect many of the "naive" brands will either agree payment of debt or withdraw from HoF leaving them with a lot of empty space and no business...

    Unsuitable or offensive? Report this comment

  • Anonymous20 August 2018 7:45 am

    If any of "retention of title", they should take all their stock back and let this dog die! Let all teh HOF's become Sports Direct Stores, as that's all they are good for!

    Unsuitable or offensive? Report this comment

  • Anonymous20 August 2018 8:25 am

    HOF should have gone bust a long time ago. Dealing with a business that is going to hit the buffers is financial suicide or does HOF have some sort of divine right to stay?

    Unsuitable or offensive? Report this comment

  • Anonymous20 August 2018 3:29 pm

    When we look at the face of it, HOF were just a loss making Mickey Mouse retailer who hoodwinked too many people in thinking they were professional outfit.

    Unsuitable or offensive? Report this comment

Show 1020results per page

Have your say

You must sign in to make a comment

Sign InRegister

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.