House Of Fraser plc said it has reached agreement for the Â£46.1m cash purchase of the retail business and assets of Jenners, Princes Street, Edinburgh Ltd. In addition, House of Fraser is assuming the Jenners pension scheme and on completion will make a cash contribution into the scheme of Â£3.4m.
Jenners operates the oldest independent department store in the world, having maintained its original position at 48 Princes Street, Edinburgh, since 1838. The assets and liabilities of Jenners being acquired include the Jenners brand and name, working capital, the feuhold property at Princes Street Edinburgh, the long leasehold property at Loch Lomond Shores, the leases at Edinburgh and Glasgow airports and the fixtures and fittings in the four stores.
House of Fraser said all locations will continue to operate under the Jenners name.
The board of House of Fraser said the purchase will be earnings enhancing for House of Fraser in the first full financial year.
In the year to Jan 30 2005, the retail business and retail assets of Jenners generated an unaudited gross transaction value of 49.1 mln stg and unaudited profit before tax and interest receivable of 2.7 mln.
All four branches traded profitably last year and trading in the first six weeks since the year end has been up 2.3 pct on the previous year.
House of Fraser said it estimates that, as at Jan 30 2005, the net assets being acquired were approximately 17.5 mln stg. The board also said it is considering various options to refinance the Princes Street property on or prior to completion.