Billionaire retailer Philip Day is in the early stages of a potential bid for House of Fraser (PRIVATE:HOF) to save it from collapse, Sky News reported on Thursday, providing no other details.
House of Fraser revealed on Wednesday that it is looking at other options to obtain investment after China’s C.banner cancelled a planned fundraising for its deal to become a majority shareholder in the troubled high street stores group.
C.banner, an international retailer, agreed in May to buy a 51% stake in House of Fraser, but earlier on Wednesday, it cancelled a planned share placing that would have funded the deal and announced a profit warning.
READ: Sports Direct founder Mike Ashley has discussed new investment deal for House of Fraser
In a statement, House of Fraser said: "In light of C.banner's announcement... House of Fraser is in discussions with alternative investors and is exploring options to obtain the required investment on the same timetable."
On Monday it was reported that Sports Direct International PLC (LON:SPD) founder Mike Ashley and House of Fraser have discussed a new investment deal for the struggling retailer.
The businessman, who already owns an 11% stake in the struggling department store, was said to have been asked to consider providing it with a £50mln loan, according to Sky News.
In June, House of Fraser announced plans to close 31 of its 59 stores, putting 6,000 jobs at risk, and agreed on a loan extension plan with its lender.
However, a legal challenge has raised the prospect the rescue bid may fail, with the company voluntary arrangement (CVA) plans being challenged by House of Fraser’s landlords.
Another condition of its creditors extending loans was the retailer receiving £70mln from Hamleys' owner C Banner.
-- Updates with Sky News report --