House of Fraser, a well-known British retail chain, has recently announced the closure of four additional stores due to failed negotiations with major landlord Intu. After 14 weeks of discussions, House of Fraser was unable to come to an agreement with Intu, resulting in the closure of stores in Lakeside, Essex, the Metrocentre mall in Gateshead, and locations in Norwich and Nottingham.
Intu, the affected landlord, is now seeking new opportunities for the vacated spaces, citing underperformance of the House of Fraser stores on their sites as a reason for the lack of agreement. While House of Fraser is facing closures, Intu remains relatively strong in the challenging retail market and is optimistic about finding new tenants for the large spaces left by the department store chain.
Despite expressing disappointment over the failed negotiations, House of Fraser is currently in talks with staff about the closures and is hopeful that other landlords will come to their aid in the future to save stores and jobs. While the exact number of job losses resulting from the closures is unknown, House of Fraser has confirmed that the stores will be shut down in the New Year.
Intu has revealed that the closure of the House of Fraser stores will impact around 1% of their secured rent and 526,000 sq ft of retail space. The landlord also mentioned that they had extensive discussions with Sports Direct, even at the highest level, in an attempt to reach mutually beneficial terms for the stores.
This latest round of store closures adds to the ongoing challenges faced by House of Fraser as it strives to adapt to the ever-changing retail landscape and meet the demands of consumers, landlords, and the market.
For more information on the retail industry and challenges faced by department store chains like House of Fraser, visit Retail Gazette and Retail Week.
