The purchase by Sports Direct of department store group House of Fraser drew a cautious response from analysts on Monday, with some saying the deal could backfire on Mike Ashley, the sportswear retailer's founder.
House of Fraser is to get a new owner after calling in administrators Friday. A fast deal to buy a slimmed-down version of the chain had been on the cards with news Friday that retail tycoon Mike Ashley is now in charge.
Britain's economy picked up some speed in the second quarter after a sharp winter slowdown in early 2018 but lost momentum in June, underlining its stuttering performance ahead of Brexit in less than eight months' time.
A rescue deal for British retailer House of Fraser was thrown into doubt on Wednesday after C.banner cancelled planned fundraising for its deal to become a majority shareholder in the department store.
With HoF rumoured to be close to collapse, it has emerged that the retailer is in emergency talks on a funding deal with several parties and Sports Direct tycoon Mike Ashley is a key figure in the negotiations.
The legal action being brought by House of Fraser landlords is set to delay the struggling retailer’s CVA and means that the £70 million cash injection that the firm is getting from its new owner could be delayed too.