House of Fraser bidder issues profit warning
The sale of a 51% stake in House of Fraser could face uncertainty after one of the Chinese companies involved in the bid issued a profit warning on Sunday.
The company is called Fullshare and forms part of Wuji Wenhua, the tourism development business which is trying to buy a majority share in House of Fraser from Sanpower-owned Nanjing Xinjiekou Department Store Co.
Fullshare announced that it expects profit to be 30% less than previously forecasted as a result of an energy firm failing to contribute to group profit, according to the Financial Mail on Sunday.
Fullshare owns 45% of Wuji Wenhua and there are at least two other Chinese investors in the company.
China’s Sanpower bought House of Fraser in 2014 and has supported the British department store chain through several turbulent years. It pumped £15 million into the business in September, and said it remains “fully committed” to the company in January after House of Fraser revealed a 4% slide in total sales over the holiday period.
Sanpower's Nanjing Xinjiekou Department Store Co. is expected to retain a 38% stake in House of Fraser after the sale.
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