House of Fraser mulls listing

According to reports, the flotation is a means of simplifying the retailer's complex ownership structure. House of Fraser owners include Don McCarthy, the company's chairman who holds a 20% stake, as well as Sir Tom Hunter's private equity firm West Coast Capital.

House of Fraser was acquired by notorious Icelandic investor Baugur Group for £350m as part of CEO Jon Asgeir Johannesson's splurge on UK retail firms at the height of the market. The group collapsed in 2009 as its debt pile of more than £1bn coupled with the Icelandic banking crash brought the prolific investor down.

The department store chain, which operates through 61 stores in the UK and employs 6,500 staff, is no stranger to the stock market, having first floated in 1948. It was bought by Mohamed Al Fayed in 1985 as part of his Harrod's purchase. The retailer was listed again prior to being bought by Baugur.

The potential listing comes after failed takeover talks with Sports Direct founder Mike Ashley. Disagreements over price and the company's weighty £85m pension deficit put the brakes on any further discussions.

Question marks over House of Fraser's valuation, which is thought to sit somewhere between £200-300m, as well as its large pension deficit are likely to make the listing a tricky one.

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