House of Fraser STOPS accepting gift cards despite Mike Ashley’s £90m cash deal to save retail chain
HOUSE of Fraser has temporarily stopped accepting gift cards and vouchers despite the chain being saved.
This morning billionaire businessman Mike Ashley snapped up the embattled retail chain through Sport Direct for £90million in cash.
But shoppers in Belfast and Glasgow have reported that stores are not accepting gift cards.
When a retailer’s future is put in jeopardy shoppers rush to use up gift cards and vouchers in case the firm stops trading for good.
It is up to the administrators to decide whether they will continue to accept them.
One shopper in Belfast said he was “disgusted” that the department store had already stopped accepting gift vouchers.
While another in Glasgow also had theirs refused.
A spokesperson for House of Fraser confirmed that the issue was “temporary” and would be “resolved shortly” as they await guidance from the new owner.
Ashley’s Sports Direct already had an 11 per cent stake in the chain.
The 53-year-old is worth an estimated £2.8billion and is also owner of Newcastle United.
He stepped in to buy the chain this morning just hours after it filed for administration.
Mike Ashley said: “We will do our best to keep as many stores open as possible.
“My ambition is to transform House of Fraser into the Harrods of the High Street.”
At present the chain’s 59 stores remain open. Although, there has been no confirmation about what will happen to the 31 earmarked for closure.
The retailer has a 170 year history as one of the country’s best-known fashion brands.
Its first shop opened in Glasgow by Hugh Fraser and James Arthur in 1849.
It became a national chain after the Second World War and over the years it has had numerous owners.
Like other retailers, House of Fraser has struggled over the past few years as stiff competition from online rivals and a slump in consumer spending have knocked the firm.
It follows the demise of BHS in 2006, with the loss of 5,000 jobs.
Toys R Us the UK’s largest toy and children’s supplier went into administration in February this year, resulting in an estimated 2,000 redundancies.
While Poundworld announced it was going into administration on June 11, with the closure of 355 stores and loss of 5,100 jobs.
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