Staff at Carlisle’s closure-threatened House of Fraser store have been given fresh hope after the firm was sold – just hours after going into administration.

Sports Direct, owned by the billionaire businessman Mike Ashley, acquired the high street chain in a £90m deal.

Mr Ashley has vowed to keep open as many branches of House of Fraser as possible. His message boosts the hopes of the chain’s 150 workers in Carlisle whose future until now looked bleak.

The businessman said he wants to turn the 59-store chain into the “Harrods of the high street”.

The dramatic development came as the News & Star learned that the Carlisle store has been making a profit.

Reacting to the news, the city’s MP John Stevenson was optimistic that the English Street store would be saved.

“This means there is now a very real prospect that the House of Fraser can stay open in Carlisle,” he said. “There is now a distinct possibility that the store in this city will stay open.”

The MP said he would now contact the new owners about its future, and to underline how important it is to the city’s retail economy.

He added: “I will write to Mike Ashley’s representatives, asking for a meeting, and seeking a reassurance that the Carlisle branch will be one of those that they keep open.

“House of Fraser actually offers the Carlisle retail market something that the city would not otherwise have. It’s quite distinct and I think it’s an important store for Carlisle’s retail market.”

Carlisle's branch in English Street was temporarily closed following the news that the department store chain had gone into administration on Friday. It reopened after a couple of hours.

In a statement for the London Stock Exchange yesterday, Sports Direct said: “The group has acquired all of the UK stores of House of Fraser, the House of Fraser brand and all of the associated stock.

“The business was purchased out of administration for a cash consideration of £90m.”

Mr Ashley, the firm’s chief executive, said: “This is a massive step forward and further enhances our strategy of elevation across the group.

“This will benefit both House of Fraser and Flannels in the luxury sector. We will do our best to keep as many stores open as possible.

“It is vital that we restore the right level of ongoing relationships with the luxury brands. Our deal was conservative, consistent and simple. My ambition is to transform House of Fraser into the Harrods of the high street.”

“Thank you for your cooperation.”

Dalston pensioner Norman Thompson, 84, said: “Mike Ashley has a mixed reputation but the alternative was administration and it would have been a shame if it had closed.”

Alan Pickard, 64, of Wetheral, was among the first customers in the Carlisle department store yesterday morning.

“I was looking in the shoe department and was interested in buying a pair then I got asked to leave,” he said, adding that it would be a great loss to Carlisle if the store was to close.

Nationally, House of Fraser employs 16,000 people – 5,900 directly and another 10,100 in concessions. For weeks, those workers have lived with the prospect of likely redundancy.

According to Sky News, Cumbrian landowner Philip Day, owner of Edinburgh Woollen Mill, explored a bid to save the company.

Earmarked for closure early next year, the Carlisle House of Fraser branch first opened in 1889. A reliable source in the county’s business community has told The News & Star that the Carlisle branch of House of Fraser is profitable.

That will add significant weight to the argument that the store should be one of those which are more likely to remain in business.

But union sources reacted guardedly to the news of the sale.

Scott Lennon, of Unite, said: “Sports Direct is a leopard that has not changed its spots and we hope that its poor record on pay and employment practices are not transferred to House of Fraser.

“We fear for jobs and employment conditions at House of Fraser going forward. The staff are entering a period of great uncertainty and worry.”