Sports Direct, the company that owns House of Fraser, has strongly rebuked recent claims suggesting that most of the stores will shut down after the Christmas period. A report by The Telegraph sparked speculation that House of Fraser was set to close the majority of its stores, but Sports Direct was quick to respond, dismissing the rumors.
In a statement released on Monday, Sports Direct clarified that the report actually referred to documents from administrators EY regarding the administration of HFL Realisations Limited, previously known as House of Fraser Limited. The company emphasized that the surrender of certain leases for £nil and a few remaining property leases mentioned in the report pertain to the old House of Fraser company and not the current Sports Direct Group, which includes the new House of Fraser Limited.
Sports Direct affirmed that it has secured new leases for most House of Fraser stores and is actively collaborating with landlords across the remaining estate. The company expressed frustration over the inaccurate reporting, which unnecessarily worried House of Fraser staff about their employment status.
When Mike Ashley’s company acquired House of Fraser for £90 million last year, there was a commitment to maintain as many stores open as possible, contrary to the previous management’s closure plans for over half of the locations. Despite the challenges highlighted in Sports Direct’s recent financial results, Ashley unveiled a new strategy aimed at rejuvenating the brand, specifically through the launch of an upscale department store chain called Frasers, slated for five House of Fraser sites.
Sports Direct adamantly denies the rumors about store closures in the upcoming year and is exploring legal options due to the inaccurate reporting. The company remains dedicated to its investment plans for the House of Fraser brand, ensuring a bright future for the renowned department store chain in the UK.
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