House of Fraser Seeks New Investors to Avoid Collapse
- C.banner pulls out of House of Fraser rescue deal worth £150m
- House of Fraser seeking £50m investment to avoid collapse
- Potential investors may include Sports Direct boss Mike Ashley
C.banner, the owner of Hamley’s, has withdrawn from a £150m rescue deal for House of Fraser due to a significant drop in its share price. The department store chain is now urgently seeking a £50m investment to avoid collapse. C.banner stated that the placing has been rendered impracticable and inadvisable, citing the shares’ drop below the expected range of HK$2.40 to HK$3.00 per share. House of Fraser is exploring options for obtaining the required investment, with potential investors including Sports Direct boss Mike Ashley. The company has faced financial struggles such as a £25m quarterly rent bill and a £10m overdraft. Last week, it secured a court-approved extension of its debt repayment deadlines.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the cancellation of C.banner’s rescue deal for House of Fraser due to a drop in share prices, the store’s financial troubles, and its search for alternative investment options.
Noise Level: 4
Noise Justification: The article provides relevant information about House of Fraser’s financial troubles and C.banner pulling out of its rescue deal due to a drop in share price, but it could benefit from more analysis or context on the broader implications of these events.
Financial Relevance: Yes
Financial Markets Impacted: House of Fraser, C.banner, potential investors such as Sports Direct’s Mike Ashley
Financial Rating Justification: The article discusses the financial troubles of House of Fraser and its impact on C.banner’s investment decision, as well as potential implications for other investors like Mike Ashley.
Presence Of Extreme Event: b
Nature Of Extreme Event: Financial Crash or Crisis
Impact Rating Of The Extreme Event: Severe
Extreme Rating Justification: The financial troubles at House of Fraser, including struggles to pay rent and an overdraft, led to the collapse of C.banner’s investment deal, causing a significant drop in its shares and putting the company at risk of collapse.
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