Sports Direct boss Mike Ashley, whose retail group bought House of Fraser out of administration last year, is preparing to invest millions of pounds in turning up to seven of House of Fraser's 50-plus stores into a new luxury mini-chain to be called Frasers. He has told suppliers he wants to divide the group into two divisions, with Frasers stocking more designer labels and House of Fraser catering to a more mass market audience.

Sources said Ashley expected to invest tens of millions of pounds in the first stage of his plan to revive the ailing chain. Work is likely to start in the group's flagship Glasgow store, which already trades under the Frasers name. The group will start with three or four stores as a trial.