House of Fraser storeImage copyright
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Sports Direct boss Mike Ashley has said his firm faces “significant challenges” in turning around the House of Fraser store chain, which it bought in August.

Mr Ashley said he believed that its previous management team “traded the business whilst it was insolvent for a long time”.

However, he repeated his intention to turn House of Fraser into “the Harrods of the High Street”.

Mr Ashley was speaking as he unveiled Sports Direct’s half-yearly results.

In the 26 weeks to 28 October, it saw a 62% rise in pre-tax profits year-on-year to £74.4m.

However, underlying profits saw a 27% slump to £64.4m.