Department store House of Fraser has been bought by retail tycoon Mike Ashley for £90 million.

The retail chain, which has a branch in the Kingsgate shopping centre in Huddersfield, was bought from administrators by the Sports Direct chief after it announced it needed a buyer on Friday morning.

Administrators announced they were seeking a buyer after failing to reach a “solvent solution” in talks with investors, and that buyers could cherry pick the company’s best assets to take on.

The move from Sports Direct means jobs are secured for 17,000 staff nationwide.

Mr Ashley’s acquisition comes a day after the Premier League transfer deadline, in which the Newcastle United owner was accused by fans of not investing enough in new players for the club.

House of Fraser, Kingsgate, Huddersfield.
House of Fraser, Kingsgate, Huddersfield.

The move means an increase on the billionaire’s grip over the UK high street, as he also owns stakes in Debenhams, Goals Soccer Centre and French Connection.

Mr Ashley beat off competition from the owner of Edinburgh Woollen Mill Phillip Day, who offered more than £100m, although accountancy giant EY opted for the Sports Direct offer.

All House of Fraser stores will be acquired and sources say Mr Ashley will begin turning some stores into Sports Direct outlets, and others may be rebranded under the Flannels fascia.

Kingsgate already has a Sports Direct store.