Retailer withdraws stock
Edinburgh Woollen Mill pulls out of House of Fraser
Sports Direct has no obligation to settle Frasers debts
Edinburgh Woollen Mill is pulling out of House of Fraser stores after failing to reach agreement with new owner Sports Direct.
The business, which owns brands including Jaeger, Jacques Vert and Austin Reed and which also manufactures suiting for House of Fraser’s Linea brand, is removing stock from the 35 stores in which it has concessions, according to trade magazine Drapers.
EWM is owned by retail billionaire Philip Day who also tried to acquire House of Fraser. Mr Day’s group is said to be owed £3m but this is not thought to be the reason for withdrawing its stock.
Sports Direct’s deal with House of Fraser does not oblige it to take on any of its debts.
EWM is said to “open to discussions with House of Fraser” and has received a pledge that all sales since the takeover will be paid in full on 10 September.
A spokesman told Drapers: “The group has ended business with House of Fraser. This decision was not taken lightly and follows a period of extended and sustained negotiations with House of Fraser.
“Our brands have a long history with House of Fraser, and we worked hard to try to secure a satisfactory arrangement.
“But sadly we have not been able to agree future trading terms that give us confidence in the security and continuity of the House of Fraser business.
“We have been forced to close our concessions in House of Fraser, and are currently in the process of withdrawing stock. Berwin & Berwin will also no longer supply any House of Fraser own-brand menswear.”