The Chinese firm which has a majority ownership in the troubled department store group House of Fraser has confirmed plans to offload most of its stake to another Chinese firm, according to the Independent.
A Chinese stock filing earlier today indicated that Nanjing Xinjiekou Department Store Co – or Nanjing Cenbest – was poised to sell off most of its holdings to tourism development company Wuji Wenhua.
Nanjing Cenbest currently has an 89 per cent stake in House of Fraser. The UK’s department stores have struggled amid the rise of online shopping and a surge in sourcing costs driven by the pound’s 7 per cent fall against the dollar and 14 per cent decline against the euro since the Brexit vote.se of Fraser, and is looking to sell off 51 per cent of it. This would mean it would retain a 38 per cent stake in the retailer.
In a statement circulated this afternoon in response to the news that broke on Bloomberg, Nanjing Cenbest confirmed it was in “advanced discussions” with Wuji Wenhua, with a view for the latter to invest in the British department store chain.
A House of Fraser spokesperson added: “This will have no impact on the day-to-day operations or strategic development of the House of Fraser business in the UK and Ireland. It is business as usual.”
