House of Fraser, a historic British department store, is poised to unveil a significant announcement this Thursday that will outline the fate of several of its locations. The company, now under the ownership of Sports Direct, has been engaged in negotiations with landlords, accusing some of them of being overly demanding.
Despite previous reports indicating that a handful of stores had been saved from closure, the sluggish progress in discussions has fueled speculation that as many as twelve locations may be forced to shut down. This stands in stark contrast to Sports Direct owner Mike Ashley’s original ambition of maintaining 80% of the stores operational.
Earlier this year, House of Fraser initiated a Company Voluntary Arrangement (CVA) which would have resulted in the closure of more than half of its stores, leaving only 29 standing. Recent updates, however, confirmed that stores in Telford, Plymouth, and London’s prestigious Oxford Street have been granted a lifeline. Additionally, establishments in Middlesbrough, Darlington, and Carlisle have also been spared closure. Nevertheless, flagship stores such as those located in London and Wolverhampton still face an uncertain future.
Mike Ashley has pointed fingers at what he perceives as “greedy landlords” for the potential closures. In contrast, many figures within the property sector have come to the defense of the landlords, noting their responsibilities to stakeholders and financial constraints. Melanie Leech, the CEO of the British Property Federation, emphasized that negotiations between House of Fraser and landlords must be a collaborative effort, with both parties needing to understand and respect each other’s positions.
The forthcoming announcement on Thursday detailing the closure list will provide clarity on the remaining locations of House of Fraser and the outcomes of the ongoing discussions with landlords. For further updates on this developing narrative, be sure to stay informed.
For more information on House of Fraser’s restructuring process and updates on store closures, visit here. Additionally, to learn more about the dynamics between retailers and landlords in the UK, click here.
