Chinese Owner Pumps in Additional Funds to Save Struggling Retail Giant

  • House of Fraser receives £15 million cash injection from Sanpower Group
  • Sales dropped by 2.5% during Christmas period
  • Total funds allocated to save the retailer reach £30 million
  • Sanpower acquired House of Fraser in 2014 for £450 million
  • House of Fraser considering selling stake to tourism development firm Wuji Wenhua

House of Fraser, the struggling UK department store chain, has received a £15 million cash injection from its Chinese owner Sanpower Group after experiencing a drop in sales during the Christmas period. The company lost £9 million last year and saw its sales fall by 2.9% over the festive season. Sanpower, chaired by billionaire Yuan Yafei, invested £15 million into the business in September last year and added another £15 million last week, bringing the total funds allocated to save the retailer to £30 million. House of Fraser was acquired by Sanpower in 2014 for £450 million. Recently, the company has been in talks with its landlords to reduce rents and appointed advisory group Rothschild to help refinance its debt package. Last week, it also held refinancing talks with Alteri Investors, aiming to secure £40 million of funding.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about House of Fraser’s financial situation, including its recent investment from Sanpower Group, losses during the Christmas period, previous investments by Sanpower, and ongoing discussions with Alteri Investors for refinancing. However, it lacks some details on the company’s overall performance and future plans.
Noise Level: 3
Noise Justification: The article provides relevant information about House of Fraser’s financial situation and recent investments from its owner Sanpower Group. However, it lacks in-depth analysis or exploration of the underlying causes of the drop in sales and potential long-term solutions for the company.
Financial Relevance: Yes
Financial Markets Impacted: House of Fraser and Sanpower Group
Financial Rating Justification: The article discusses financial issues faced by House of Fraser, a retail company, and the investment from its owner Sanpower Group to save it from further losses. It also mentions refinancing talks with Alteri Investors, which impacts the financial markets and companies involved.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk