Mike Ashley's Frasers Group buys Psyche

Psyche, which sells designer clothing, has won a number of national awards

Mike Ashley's Frasers Group has bought Teesside-based designer clothing retailer Psyche.

The deal secures the future of 58 staff who work at the firm's Middlesbrough shop and its website, Psyche boss Steve Cochrane said.

The business, run by Mr Cochrane for 38 years, has been hit by the closure of non-essential shops amid the coronavirus pandemic.

Frasers Group has been approached for comment.

Its other businesses include department store chain House of Fraser, Sports Direct and clothing retailer Flannels.

'Under the cosh'

It will carry out an appraisal over the next six to 12 months to decide "where Psyche fits into its retail offer," Mr Cochrane said.

"We sit between Flannels and House of Fraser with the brands we sell. Hopefully there will be a space for us.

"In a couple of years there'll still be a clothes shop on Linthorpe Road, but whether it's called Psyche, who knows."

Mr Cochrane, whose job title at Psyche will become chief executive officer, declined an initial approach in 2017.

However, he said he had reconsidered with the high street "under the cosh" from the rise of online shopping, Brexit worries and coronavirus.

"In 2017, we were in the ascendant. We were still growing and thinking of opening in Durham.

"Now with the headwinds we're facing, it will secure the future of all the staff.

"My wife thinks I'll need bereavement counselling. When you've started it from nothing and built it up it's a very difficult one, but it was a very good deal and it's going to allow us to go forward."

Mr Cochrane declined to reveal the value of the buyout.