Chairman Mike Ashley, who snapped up troubled House of Fraser for £90m in the summer, told media today that he faces “significant challenges” in turning the department store around.
“I have made my views clear that I believe the previous House of Fraser senior management team traded the business whilst it was insolvent for a long time, this means we have significant challenges ahead in turning House of Fraser around,” he says in a statement.
“However, I genuinely believe we have acquired a fantastic opportunity and with the efforts of Sports Direct and House of Fraser teams, and the support of the brands, local councils and landlords, we can turn House of Fraser into the Harrods of the High Street.”
In the 26 weeks to 28 October 2018, Sports Direct underlying profit before tax fell 26.8 per cent to £64.4m.
Reported profit before tax rose 62.4% to £74.4m after “fair value impacts in the prior period”, the firm says.