House of Fraser dramatically cut its net debt in the few months following its acquisition by a Baugur-led consortium in November last year.

According to figures filed at Companies House for the three months to January this year, the department store chain has cut is net debt toÂŁ266.1 million, down fromÂŁ423 million at the time of the takeover.

Between November and January, the consortium – Highland Acquisitions – reduced debt by selling the company’s headquarters and conducting a sale and leaseback of a Glasgow department store.

As part of the takeover, Baugur putÂŁ180 million in equity andÂŁ423 million in debt. Turnover in the three months between the deal and January 27 stood atÂŁ246.7 million, with pre-tax profits ofÂŁ7.9 million after an exceptional charge ofÂŁ23.2 million.

House of Fraser chief executive John King is leading a major rejuvenation of the retailer, including the introduction of high-profile brands such as Thomas Pink, Gap and Body Shop.

The retailer will spendÂŁ50 million on branding and marketing and aÂŁ180 million three-year programme to overhaul its store portfolio and reposition the brand upmarket.

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