Department Store Giant in Dire Need of Cash Injection

  • House of Fraser holds emergency refinancing talks with Alteri Investors
  • Talks collapse due to staked core assets as collateral for existing debts
  • Sales fell by 2.9% during festive period, losing £9m last year
  • Sanpower agrees to sell 51% stake to Wuji Wenhua
  • Banks hire EY to assess financials and loan recovery chances

Department store group House of Fraser is struggling financially and has held emergency refinancing talks with Alteri Investors to secure around £40m funding. However, the discussions fell through as the company had already used its core assets as collateral for existing debts. The retailer lost £9m last year and experienced a 2.9% drop in sales during the festive season. Sanpower, which acquired House of Fraser in 2014, agreed to sell 51% stake to Chinese firm Wuji Wenhua, leaving them with a 38% share. In response, banks hired EY to assess the retailer’s financial situation and potential loan recovery.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about House of Fraser’s financial situation, including details on refinancing talks with Alteri Investors, the company’s losses, and the sale of a stake to Wuji Wenhua. It also mentions the involvement of EY in assessing the retailer’s financials.
Noise Level: 3
Noise Justification: The article provides relevant information about House of Fraser’s financial situation and ongoing discussions with Alteri Investors. However, it lacks in-depth analysis or exploration of long-term trends or possibilities, accountability, scientific rigor, intellectual honesty, staying on topic, evidence, data, examples, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: House of Fraser, Alteri Investors, Sanpower, Wuji Wenhua
Financial Rating Justification: The article discusses House of Fraser’s financial condition and its attempts to secure funding, as well as the involvement of various companies in its financial situation. It also mentions the sale of a stake in the company and the hiring of EY to assess its financials.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk