House of Fraser has established a deadline on the 20th August to secure new funding that will help its stores with its trading.
The department store requires additional investment after C.banner, its prospective owner, pulled out of a deal to invest in the chain by acquiring a majority stake in the company.
The prospective backers of the company have been reported to include big names such as Mike Ashley, the founder of Sports Direct, Philip Day, the owner of Edinburgh Woollen Mill, and Alteri Investors, a buyout firm.
PwC serves as the adviser of the lenders and bondholders of House of Fraser. Sky News reported that it gave the bidders a deadline of this morning to present proposals.
A statement to the Luxembourg Stock Exchange was issued by the House of Fraser this morning. It said that “discussions continue with interested investors.” It also said that the talks are “focused on concluding as quickly as possible to enable receipt of an investment required by no later than 20 August 2018”.
The deadline gives the struggling department store only 10 days to come up with a deal which will enable it to pay for stock and rents that will last through the busy Christmas trading period.
However, an agreement could likely be reached far sooner than the said deadline.
House of Fraser has around 17,500 employees- 6,000 of which are employed directly and 11,500 are concession staff.
In the statement released in Luxembourg, where it has bond investors, House of Fraser said that it would provide additional updates “as and when appropriate.”
The statement added: “House of Fraser thanks all of its employees, suppliers and other stakeholders for their ongoing support.”
Around 31 of the stores of the retail chain are scheduled to close in early next year under a company voluntary arrangement (CVA) which is to continue after a legal challenge to the process was dropped earlier during the week.