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Chinese owner of HoF, said to inject fresh funding into company

Business

By Vivian Hendriksz

28 Mar 2018

Amid growing fears concerning the future of struggling department store group House of Fraser, comes news that its Chinese owner is preparing to inject fresh capital into HoF.

Sanpower, which holds an 89 percent stake in House of Fraser through its Shanghai subsidiary Nanjing Cenbest, is set to inject 15 million pounds into HoF, as part of its broader plans to calms concerns over its financial situation, according to a report from the Guardian. Manpower chairman, Yuan Yafei, told trade minister Liam Fox that he aims to control HoF in the long term and is said to have promised further investment in the House of Fraser brand.

A spokesperson for Sanpower confirmed that Yafei aims to inject more cash into House of Fraser through Nanjing Cenbest. “We at Sanpower continue to support House of Fraser as it embarks on a year of significant transformation in 2018,” said the spokesperson to The Guardian. “Sanpower, through the listed company, has invested 45 million pounds in House of Fraser and plans to inject further capital.”

The news comes as HoF bank lenders hire accountancy EY to review the business’s finances as speculation emerges that HoF conducted talks with Alteri Investors in the hopes of refinancing its 400 million pound debt. House Fraser has since stated it only met with Alteri at their own request and is not seeking fresh capital given the state of its current loans.

Photo: House of Fraser, China