Kendals concern as chain bosses ask for rent cuts
DEPARTMENT store chain House of Fraser has asked landlords to cut rents after a difficult 2017.
The news will create concern over the future of iconic Deansgate department store Kendals – House of Fraser Manchester.
But the company insists it is ‘driving forward’ with what it calls a ‘transformation programme.’
It has made approaches to some of the owners of its 58 British stores to ask for help in slashing costs.
At this stage it remains unclear if Kendals is among the stores or how many landlords the company has requested a rent cut from, with our sister paper The Mirror reporting the request was described as ‘informal.’
House of Fraser, which is privately owned by Chinese conglomerate Sanpower, confirmed the move in a statement.
A spokeswoman from the company said: “We can confirm that we have contacted some of our landlords asking for their support as we drive forward with our transformation programme.” Half-year results showed the firm recording an £8.6m loss – down from a £900,000 profit in 2016. The introduction of a new web platform is believed to have cost House of Fraser around £25m. High street retailers reportedly struggled over Christmas, with analysts suggesting discount brands rather than some of the more traditional big names were doing best.
A top credit ratings agency warned in September that the next few months would be ‘crucial’ for House of Fraser. Moody’s said the department store chain’s ‘credit quality remained highly exposed to performance over the crucial Christmas trading period.’
The news comes after rival brand Debenhams warned its figures were likely to indicate a decline of around 2.6pc.
Despite being owned by House of Fraser since 1959, the Deansgate store is known to most Mancs as Kendals – after its original owners Kendal, Milne and Co.
The ‘Kendal, Milne and Co’ name is still clearly visible on marble fascias above the store’s entrances.