House of Fraser has said it would consider buying the 35% of the chain owned by troubled Icelandic investment group Baugur...and that it has the funds to do so.
In a statement made by the company it said: "We would like to emphasise that House of Fraser has all the funding in place to operate successfully.

"However, should any of the debt or minority shareholdings in House of Fraser be put up for sale, we will examine it on a cost-by-case basis."

The news follows speculation about the future of Baugur after the collapse of the Icelandic economy. Sir Philip Green, head of the Arcadia Group is still in the frame to buy Baugur's debt.

Baugur's business interests include Wyevale Garden Centres, Mappin & Webb and myriad women's clothing retailers including Oasis, Karen Millen, Warehouse, Principles, Coast and Jane Norman.