October 25, 2018 / 7:00 AM / 9 months ago

UPDATE 1-ScS Group to stop selling via House of Fraser stores by end of Jan

(Adds details, background on House of Fraser's collapse)

Oct 25 (Reuters) - ScS Group Plc said on Thursday it would stop selling made-to-order sofas, furniture and flooring at stores operated by collapsed British departmental store group House of Fraser, by the end of January.

ScS Group, which started trading in Sunderland around the 1890s as a family-owned general home furnishings store, said the 27 concessions within House of Fraser stores had accounted for a 52.5 percent decline in like-for-like orders for the 12 weeks ended Oct. 20.

"...Given developments in House of Fraser over the last few months, it has become clear that the partnership was no longer beneficial to ScS," Chief Executive David Knight said in a statement.

The furniture retailer said the House of Fraser concessions business accounted for 2.7 percent of its order intake in the 12 week period.

ScS, which stands for "Sofa Carpet Specialist", operates more than 100 stores in Britain and has an online presence.

British store chains are being crippled by pressure from online retailers such as Amazon, exacerbated by a rise in costs stemming from the pound's Brexit-induced weakness, resulting in the fall of several brands such as Carpetright and Mothercare and the UK arm of Toys "R" Us.

Sports Direct, the British sportswear retailer controlled by tycoon Mike Ashley, snapped up House of Fraser from the department store group's administrators for 90 million pounds ($116.24 million) in August. ($1 = 0.7743 pounds) (Reporting by Karina Dsouza and Noor Zainab Hussain in Bengaluru; Editing by Gopakumar Warrier, Amrutha Gayathri)

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