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 to£266.1 million, down from£423 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 put£180 million in equity and£423 million in debt. Turnover in the three months between the deal and January 27 stood at£246.7 million, with pre-tax profits of£7.9 million after an exceptional charge of£23.2 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 spend£50 million on branding and marketing and a£180 million three-year programme to overhaul its store portfolio and reposition the brand upmarket.