UK retail chain House of Fraser goes into administration

Associated Press |

LONDON (AP) — The department store chain House of Fraser has gone into administration, a decision that puts 17,000 jobs at risk in the 169-year old business.

The move came after discussions between investors and creditors failed to offer a "solvent solution."

Financial firm EY, which is expected to be appointed administrator on Friday, will continue discussions. The ailing retailer says parts of the business could still be rescued.

The most recent crisis began when C.banner, the Chinese owner of Hamleys toy store, pulled its investment. It had been planning to buy a 51 percent stake and pump 70 million pounds ($89 million) into the chain, but pulled out last week.

Frank Slevin, chairman of House of Fraser, says he's confident the business is "close to securing its future."

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