Dramatic morning sees EY appointed House of Fraser administrators before £90m rescue

The takeover was announced just hours after the 169 year-old chain went into administration with reports suggesting that EY had been appointed for the task.

The struggling retailer, which announced plans to close its Edinburgh store in June, affecting 127 jobs, had failed to to reach an agreement with creditors when Ashley swooped.

Court hearings were expected to take place at 7:30am today, “at which orders will be sought appointing individuals from Earnest & Young as administrators of each of the operating companies with immediate effect,” the filing said.

The Edinburgh closure was announced two months ago when it was also unveiled that House of Fraser was to also shut 31 stores across the UK as part of restructuring plans.

The announcement also included confirmation that the flagship store in Glasgow’s Buchanan Street, as well as the Jenners stores in Edinburgh’s Princes Street and Loch Lomond Shores, along with the Highland House of Fraser in Inverness, will survive the cull.

All 59 shops were set to open as usual on Friday, including 31 that have already been earmarked for closure as part of a restructuring agreement, although this morning the firm’s website was offline.

House of Fraser employs 17,500 people, including 11,500 concession staff.

Following the striking of today’s takeover deal, Sports Direct said in a statement: “The group has acquired all of the UK stores of House of Fraser, the House of Fraser brand and all of the stock in the business.”

Mike Ashley already held an 11 per cent stake in the department store chain and it was not clear what his plans were but they could include rebranding some stores as Sports Direct.