STAFF FEAR TRUE COST OF FRASERS TAKEOVER
Ashley steps in to save struggling high street chain – but unions warn of poor employment practices
STAFF at Glasgow’s oldest department store are waiting to find out if their jobs are safe after a buy- out by tycoon Mike Ashley, owner of Sports Direct.
It is not known how many House of Fraser stores will be kept open after the chain was bought in a £ 90million deal.
Unions have warned they hope Sports Direct’s “poor record on pay and employment practices” is not “transferred” to House of Fraser.
GLASGOW’S oldest department store has been saved from closure – but the future is still unclear for its staff.
House of Fraser was bought by Sports Direct owner and retail tycoon, Mike Ashley, shortly after it went into administration.
The Glasgow store, seen as the jewel in Buchanan Street’s crown, is one of 59 saved from the axe, but it is not known how many branches will be kept open.
Mr Ashley moved to allay fears the firm could go down market, stating he wants Frasers to be the “Harrods of the High Street”.
No details for individual stores have been released so far and concerns remain over the flagship Glasgow outlet and staff conditions.
Mr Ashley has appeared before MPs in the House of Commons to defend working practices at his stores.
Alison Thewliss, SNP MP for Glasgow Central, said: “The store is vitally important for footfall and to the wider retail environment.
“The brand has been a mainstay on the high street for decades, and I would urge the new owners to assure staff that their long- term employment is secure, and that there will be no diminution in their terms and conditions, as soon as possible”.
Scott Lennon, Unite regional officer with responsibility for Sports Direct, said: “Sports Direct is a leopard that has not changed its spots and we hope that its poor record on pay and employment practices are not transferred to the House of Fraser.
“We fear for jobs and employment conditions at the House of Fraser going forward. The staff are entering a period of great uncertainty and worry.”
Jackie Baillie, Labour’s economy spokeswoman, said: “Mr Ashley must make saving as many jobs as possible his top priority and he must also guarantee that he will not usher in the same deplorable working practices at his Sports Direct firm into department stores across Britain.”
The flagship Glasgow store, on Buchanan St r e et , remained closed yesterday until 11am while staff were br iefed on the lat est developments.
Mr Ashley paid £ 90 million for the stores, assets, brand and stock after it was feared Frasers could be the latest casualty on the high street.
He said he plans to keep as many stores as possible open but some, it is thought, will be rebranded as Sports Direct or Flannels, another Ashleyowned retail business.
The deal affects 16,000 workers, including 10,000 in the in- store concessions.
Mr Ashley said: “We will do our best to keep as many stores open as possible.
“My ambition is to transform House of Fraser into the
‘‘ I want to transform Frasers into Harrods
Harrods of the high street. This is a massive step forward and further enhances our strategy of elevation across the group.
“This will benefit both House of Fraser and Flannels in the luxury sector.
“It is vital that we restore the right level of ongoing relationships with the luxury brands. Our deal was conservative, consistent and simple.”
Retail experts said it was a surprise House of Fraser didn’t hit serious trouble earlier.
Tim Jackson, head of the British School of Fashion at Glasgow Caledonian University, said: “In many respects it is a surprise that House of Fraser held on for so long.
“It didn’t keep up with the times. Poor brand and product category selection, limited brand meaning or relevance,