SPORTS Direct have agreed to buy House of Fraser for £90 million.

Mike Ashley, who owns the sports retailer and Newcastle United Football Club, agreed a deal with the accountancy firm EY, who were appointed the administrator this morning.

The future of the Cirencester store as well as 30 others still remains unclear, with no details yet of Ashley's plans for House of Fraser.

Paul Souber, Co-Head of Colliers International’s Retail division commented: “With the latest news that Mike Ashley has just purchased House of Fraser today, on the one hand, this could be viewed as positive news for high streets nationwide as despite the doom and gloom sentiment surrounding the sector at present, this is really a boost in confidence for both landlords and retailers as well as employees in the trade, who were due to potentially lose their jobs.

“ In addition, it will be interesting to see how Sport’s Direct’s multichannel experience could help to turn around House of Fraser’s department stores’ ill-fate."

He added: "Retailers that provide the right experience and service are really adapting the way that people shop, and as a result, are changing the requirement for the bricks and mortar store so it would be interesting to understand Sports Directs’ take on this." 

More to follow.