House of Fraser to open stores in China following deal

“With House of Fraser, we see significant opportunities to develop the business further and replicate the already successful model in international markets, in particular in China,” he said.

A spokesman for House of Fraser declined to comment on plans for Chinese expansion. The takeover is likely to take four months to complete. The intention of Sports Direct founder Mike Ashley, who has sought to derail the deal, remain unclear.

The sporting goods company has bought an 11pc holding in the department store group from retail tycoon Sir Tom Hunter, but House of Fraser has said that the stake purchase could be invalid under a shareholders’ agreement.

The department store group insists that the holding is subject to pre-emption rights that meant Sir Tom was obliged to offer the stake to pre-existing investors, who include Karen Millen.

However, people close to the situation have told The Daily Telegraph that Sir Tom did offer the stake to other shareholders. House of Fraser also warned that, should Sports Direct succeed in the purchase, the stake had lost the right to board representation, meaning Mr Ashley would have no say in the direction of the company.

The attempted stake purchase marks the latest stage Mr Ashley’s pursuit of the department store company, as he is understood to have been interested in House of Fraser for at least two years. Sports Direct did not comment.

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