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

Mike Ashley slams ‘misleading’ House of Fraser directors

Mike Ashley has called for House of Fraser’s former directors to face an Insolvency Service inquiry, claiming they “misled” suppliers and warehouse operators.

The Sunday Times reported yesterday that Ashley, who bought House of Fraser for £90m through Sports Direct last month in a pre-pack administration deal, claimed the department store chain’s chairman, Frank Slevin and other colleagues had promised to pay suppliers with cash from the business’s former owner, Chinese conglomerate Sanpower.

The report from administrator EY showed House of Fraser had debts totalling £484m, including £30.4m owed to XPO Logistics.

Since Ashley took over the business, online orders have been cancelled and the company’s warehouses, which are operated by XPO Logistics closed, opened and then closed again amid ongoing disputes. 

“I believe XPO and others were totally misled by Frank Slevin and the House of Fraser board, and the demise of House of Fraser should be fully investigated,” said Ashley.

Responding to the claims in the Sunday Times, Slevin said he had had “no direct conversations” with XPO.

Meanwhile, Ashley is expected to miss the upcoming Sports Direct AGM on 12 September because of “overriding demands on his time”. Chairman Keith Hellawell will instead chair the meeting, where it is expected the pair may face shareholder rebellion over their management of the company. This will be the first AGM since Sports Direct acquired House of Fraser.

Have your say

You must sign in to make a comment

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.