View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
November 12, 2018

More House of Fraser stores to close?

UK department store retailer House of Fraser could be preparing for another tranche of store closures after landlords refused to agree to new boss Mike Ashley's proposed terms.

By Beth Wright

UK department store retailer House of Fraser could be preparing for another tranche of store closures after landlords refused to agree to new boss Mike Ashley’s proposed terms.

The Sports Direct owner is understood to have met with property agents at CBRE last week to discuss which stores should close their doors for the last time following the ongoing dispute. The number of closures and job losses could be “significant”, according to a report published by The Times.

Since Ashley bought House of Fraser in a GBP90m (US$115m) deal in August, he has been operating its stores on licences that allow him to hand back the keys with two months’ notice, the report claims.

It adds Ashley is also understood to have offered landlords short-term deals where rents are tied to store performance and offered to pay business rates but no rent.

The Sports Direct owner is said to have agreed terms in September with landlords on 20 of House of Fraser’s 59 stores, but only a handful have been closed.

Sports Direct did not respond to just-style’s request for comment at the time of going to press.

Related Companies

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Style