The executive chairman of Paul Smith has questioned the ethics of Frasers Group’s £43.3m takeover of Harvey Nichols, completed through a pre-pack administration in August that is expected to leave suppliers recovering less than 15 per cent of their debts.
“I personally find this whole thing about pre-pack administrations just dubious in terms of ethics and the way business gets done,” Ewan Venters, who was appointed chair of the fashion house last October, told the BBC Big Boss podcast.
Frasers, which is controlled by the billionaire Mike Ashley, bought the luxury department store through the pre-pack process. Critics argue such deals can leave creditors carrying unpaid debts.
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