House of Fraser is understood to be receiving a GBP30m (US$42.2m) cash injection from its Chinese shareholder Sanpower Group in a move that could ease the UK department store retailer's strained finances.

Controlled by Yuan Yafei and holding an 89% stake in House of Fraser through its subsidiary Nanjing Cenbest, Sanpower pumped GBP15m into the retailer last week in order to help it meet payments to concessionaires and landlords, according to The Times. It is expected to provide at least the same amount again shortly and comes on top of GBP15m given to House of Fraser by Sanpower last September.

The news comes after reported talks between House of Fraser and specialist lender Alteri to secure GBP40m in emergency funding collapsed late last month.

The retailer, which employs 6,000 across 59 stores, is due to announce its full-year results in mid-April and provide an update on its transformation plan, which is working to find GBP26m in annual savings.

Concerns have grown about the future of House of Fraser. It reported "disappointing" Christmas sales in January, in which store revenues declined by 2.9%. The company also had credit insurance pulled from some of its suppliers in February.

House of Fraser offloads brands amid "disappointing" Christmas

House of Fraser supplier credit cover withdrawn

House of Fraser did not return a request for comment at the time of going to press.