Latest: Sports Direct deal to buy House of Fraser does not include Irish store

Update 2.20pm: The Sports Direct deal to buy House of Fraser for £90 million (€100m) does not include its Irish store.

The shutters were briefly pulled at the outlet at Dundrum Town Centre in Dublin this morning before administrators confirmed that the store would continue trading for the foreseeable future.

Mandate Trade Union says it is seeking a meeting with EY to ensure staff interests are protected.

Spokesperson Gerry Light says staff are very worried: "Hearing rumours that some of the concession outlets in the store are removing their goods from the store in case the next time the shutters go down on the store they stay down.

"So we're working as quickly as we possibly can to try to assure staff that their representatives and trade union will do everything within our power to ensure that their interests are looked after."

Earlier: House of Fraser bought by Mike Ashley's Sports Direct

Mike Ashley's Sports Direct has struck a deal to rescue House of Fraser out of administration for £90 million (€100m), raising hopes for the future of thousands of staff.

In a stock market announcement, Sports Direct said it has acquired all of the UK stores of House of Fraser, the brand and all of the stock in the business.

Pic: Dominic Lipinski/PA Wire

Some 17,000 staff are being informed that they will be transferred over from House of Fraser to Sports Direct.

The deal was struck through a pre-pack administration process, where a company is put into administration before a new buyer cherry picks the best assets.

The tycoon beat off competition from retail rival Philip Day, the billionaire owner of Edinburgh Woollen Mill.

It is understood that Mr Day's proposal was in excess of £100 million (€111m), would have avoided an administration and included House of Fraser's pension scheme.

However, accountancy giant EY, which was overseeing the process, opted for Mr Ashley's offer.

Sources said that Mr Ashley will now begin the process of turning some House of Fraser stores into Sports Direct outlets and rebrand others under the Flannels fascia.

Prior to its collapse, Mr Ashley had held an 11% stake in the department store chain.

There is still no word on the future of the Dublin outlet at the Dundrum Town Centre.

Mandate trade union represents Irish House of Fraser workers.

Their spokesman Gerry Light said: "All I can say is that we are increasingly concerned.

"We were aware for a while now that the House of Fraser business was in difficulty.

"We have written to the Irish management asking them to clearly indicate the potential impact that might arise for our members."

PA & Digital Desk


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