Psyche employs 58 staff across its stores and online

Psyche employs 58 staff across its stores and online

Frasers Group, the owner of brands including House of Fraser, Sports Direct and Flannels, has acquired UK designer clothing retailer Psyche.

The deal, for an undisclosed sum, will secure the jobs of all 58 employees who work at the brand's Middlesborough store and online. The company's Durham store didn't re-open after the November lockdown.

"2019 was a tough year for all retail with the high street contracting and facing certain challenges then," Steve Cochrane, managing director, Psyche told just-style. "Then the first lockdown weakened us significantly and the second lockdown came at the busiest month of the year, and now with more lockdowns looming it is going to be very difficult to survive."

Psyche was originally approached by Frasers Group in 2017, and Cochrane says he has also been in talks with JD Sports.

"I have been talking to [Frasers Group] for a while but I was never interested in a buyer, but with things getting tougher I began looking at all opportunities."

Cochrane say Psyche will sit under the Flannels brand of Frasers Group and he will continue in his position of CEO for the company. No job cuts are expected as a result of the deal.

"I'm very optimistic about our future now. I'm keen to get involved in a growing, expanding company that has a very clear vision and focus. [Fraser's] don't know what they're doing with us yet and how we're going to fit in. But we sit nicely between House of Fraser and Flannels so there is a nice niche for us there."

Fraser's Group has been in talks to acquire UK department store chain Debenhams, and last month made a last-ditch attempt to rescue the retail group days after it was announced operations would begin winding down ahead of a liquidation process this year.

A month earlier, it had made a bid to acquire the Arcadia Group as it collapsed into administration, but the bid was rejected.