From drapery store to high street giant
FROM humble origins as a drapery shop on a street corner 1 9 years ago, House of Fraser grew into a household name – the place for shoppers to go for everything from cosmetics and fashion to furniture and gadgets such as the Hostess trolley.
It was founded as Arthur & Fraser in Glasgow in 1849 by Hugh Fraser, a drapery warehouse manager, and James Arthur, a shopkeeper who bought stock from the warehouse.
Their store was a success and they established a wholesale trade next door. But in 18 5, they fell out and the partnership was dissolved. Fraser assumed control of the retail businesses, while Arthur took over the wholesale side.
Under Fraser’s son and grandson, both also called Hugh, the business survived the Great Depression of the 1920s and 30s. It bought dozens of rivals and was renamed House of Fraser. It acquired its first outlet in England in 1951 and in 1959 bought Harrods, putting House of Fraser at the top of the retail world. Hugh Fra- ser III was made Lord Fraser of Allander in 19 3 but died three years later and was succeeded by his son, Sir Hugh Fraser.
Flamboyant, dashing and enterprising, Sir Hugh was determined to move away from the firm’s old-fashioned image, introducing high-class fashions and embarking on a vigorous expansion.
During the early 1970s more than 50 stores joined the group and profits doubled to over £10million. But Sir Hugh was hampered by the worldwide recession following the 1974 oil crisis and became increasingly addicted to gambling, selling House of Fraser shares to finance his habit. He was removed as chairman in 1981, sparking a struggle for control between corporate raider Tiny Rowland, boss of Lonrho, and Egyptian tycoon Mohamed Al Fayed and his brothers.
The Al Fayeds won. They kept Harrods but in 1994 sold House of Fraser. The company experienced difficult times, closed stores and cut nearly 1,000 staff. In 2014 it was sold to the Chinese.
Retail analyst Richard Hyman said yesterday: ‘House of Fraser has been a weak player for many, many years.
‘It’s very difficult to see how this business will survive longer term It is very much on borrowed time and has been for quite a while.’