House of Fraser underwent a major restructuring in senior management following its acquisition by Sports Direct in August. After the collapse of the department store chain earlier in the year, the new owners, led by billionaire Mike Ashley, made the decision to dismiss the former directors and senior leadership team. This move came amidst growing calls for an investigation into the circumstances that led to House of Fraser’s demise.
Sports Direct’s acquisition of House of Fraser for £90 million was intended to preserve as many stores as possible, but the transition has been met with various challenges. These challenges include the closure of the e-tail site, stock shortages in physical stores, and customer complaints regarding delays in getting refunds processed. Negotiations with store landlords have also proven to be difficult, as many are hesitant to agree to the terms proposed by Ashley.
While discussions with landlords are ongoing, certain locations, such as the Shrewsbury store, have already been slated for closure. Speculation is also rife about the potential closure of the Exeter store in the near future. Agreements still need to be reached for a number of stores to prevent further closures, as some property owners are finding it hard to accept rent reductions or business-rates-only deals.
The saga of House of Fraser continues to evolve, with uncertainties lingering about the chain’s troubled past and the future of its remaining stores under new ownership. The removal of the senior management team signifies a pivotal moment in the brand’s history, indicating a fresh direction under Sports Direct’s stewardship.
Learn more about the House of Fraser shakeup: BBC
Follow the latest developments in the House of Fraser story: Retail Gazette
