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.
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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.
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