Massarella to continue operating at House of Fraser under Mike Ashley ownership

Massarella Catering Group will continue operating its House of Fraser outlets under Mike Ashley's ownership.

The South Yorkshire-based business operates 47 restaurants and cafés within House of Fraser stores, an historic relationship that dates to founder Sir Hugh Fraser's reign.

However, the managing director said this "does not overcome all the difficulties" the catering company sustained through the administration.

Managing director Mark Massarella said: "Following the administration of House of Fraser last Friday and the acquisition by Sports Direct, I met with Mike Ashley and his team on Monday to clarify the implications. I can report that we had a positive meeting and have reached an agreement to continue trading all of our restaurants within House of Fraser.

"Although this does not overcome all the difficulties that we have sustained through the administration of House of Fraser, I am hopeful that we will be able to retain more of our business than we had originally expected under the previous CVA proposal. We have agreed terms with Sports Direct which now stabilises the company's situation and gives us the opportunity to continue trading all the coffee shops within the stores.

"I was impressed with Mike Ashley's aspirations for House of Fraser, coupled with the level of funds that he is proposing to invest which should breathe new life into many of the stores. We are delighted to have the opportunity to work closely with Sports Direct to develop the hospitality within House of Fraser going forward."

Ashley purchased the 169-year-old department store business for £90m last week just three hours after it fell into administration. He has said he wants to turn 59-store strong House of Fraser into the "Harrods of the high street".

Massarella was founded in 1864 and operates more than 120 cafés and restaurants throughout the UK.

House of Fraser coffee shop owner awaits news of department stores' future >>

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