House of Fraser will appoint administrators, it announced this morning.

The department store said in a statement this morning that talks with investors and creditors had "not concluded in a solvent solution".

House of Fraser employs 17,500 people, including 11,500 concession staff.

It has a store in Carlisle, which employs around 150 people.

The retailer said "significant progress has been made" in reaching a sale of the group's business and assets.

EY, which is expected to be appointed administrators today, is expected to continue those discussions in hopes of reaching a deal "shortly after their appointment".

Earlier this month, Chinese firm C.banner, which owns Hamleys, pulled out of a rescue deal.

Last night, House of Fraser said it must secure funding before August 20.

"House of Fraser confirms that discussions continue with interested investors and its main secured creditors, which are focused on concluding as quickly as possible to enable receipt of an investment required by no later than 20 August 2018," the group said in a statement on the Luxembourg Stock Exchange.

C.banner was planning to buy a 51 per cent stake in House of Fraser and plough £70 million into the ailing retailer, but scrapped the move last week.

House of Fraser's lenders, which include HSBC, were in talks with would-be suitors, including Sports Direct tycoon Mike Ashley and Cumbria's Philip Day, the billionaire owner of Edinburgh Woollen Mill.

The pair were due to submit proposals to rescue House of Fraser this week.

But this morning, it confirmed administrators will be called in.

Alex Williamson, chief executive of House of Fraser, said: "We are hopeful that the current negotiations will shortly be concluded.

"An acquisition of the 169-year-old retail business will see House of Fraser regain stability, certainty and financial strength.

"In the two weeks since the Cenbest and C.banner transaction ceased, the directors have brought forward a number of potential buyers and the group's financial advisors have run a comprehensive M&A process to identify and then develop other third party interest that has culminated in the senior secured creditors leading negotiations with parties at a critical pace."