House of Fraser on Briggate in Leeds, West Yorkshire, UK. Credit: Mtaylor848.

Sportswear retailer Sports Direct International has acquired the business and assets of department store chain House of Fraser for a cash consideration of £90m ($115m).

The group has acquired House of Fraser, and James Beattie, the group’s main operating company.

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Pursuant to the transaction, all of the UK stores of House of Fraser, the brand, and all of the stock in the business have been acquired by Sports Direct.

The House of Fraser group reported gross assets of £946.3m ($1.2bn) and made £14.7m ($18.7m) net profit for the year ending 28 January 2017.

The latest deal comes after House of Fraser went into administration following the failure of talks with its creditors for reaching an agreement.

Sports Direct chief executive Mike Ashley said that the company plans to convert the chain into the “Harrods of the High Street”.

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House of Fraser employs 16,000, 5,900 directly and 10,100 in concessions, BBC reported.

“We hope that this will give the business the stable financial platform that it requires to flourish in the current retail environment.”

Prior to the collapse of House of Fraser, Sports Direct held an 11% stake. Ernst and Young (EY) was appointed as administrator.

EY administrator Alan Hudson said that the Sports Direct deal “preserves as many of the jobs of House of Fraser’s employees as possible.”

“We hope that this will give the business the stable financial platform that it requires to flourish in the current retail environment.”

House of Fraser, which was established in Glasgow, has 56 stores and two outlets across the UK and Ireland.

The group entered a company voluntary arrangement in May and announced the closure of 31 stores in June.