IS MIKE THE MAN TO SAVE OUR STORE?
NOTTINGHAM’S House of Fraser store opened two hours late yesterday as a last-minute deal to save the high street brand from administration was made.
Staff at the intu Victoria Centre store told customers they were waiting for an “announcement” at 11am before they could open - but said they were ‘in the dark’ about what was happening”.
It was then announced at 10am that Mike Ashley, owner of Shirebrook-based Sports Direct, had struck a £90 million deal to rescue parts of the company from administration.
The sale to Mr Ashley – who previously had an 11 percent stake in the company – was met with a mixed reaction.
Nigel Wheatley, general manager of intu Victoria Centre, said: “We are aware that House of Fraser has been bought by Sports Direct. We await further details on their plans, and if these will impact their store at intu Victoria Centre. Our customers can be assured that we will continue to work closely with existing and new retailers to deliver the great mix of stores, leisure and entertainment that they have come to expect from us.”
Nelson Blackley, retail research associate at Nottingham Trent Nniversity’s Nottingham Business School, believes Mr Ashley will have different options available to him when he looks at House of Fraser’s portfolio. Among these could be to close some stores, while changing them into Sports Directs would be another. With Nottingham’s Sports Direct just a few hundred yards away from the Victoria Centre, this would be an unlikely option. Mr Blackley said: “In the short term, it is good news for all the House of Fraser stores and staff. But he [Mr Ashley] is going to have to look at the different options. I think there is more than one option and it could be a while before he decides what his plans are.” On the high street, Nottingham residents Lita and Graham Shelton welcomed the sale. Mr Shelton said: “It is just a lifeline that they [staff] have been offered.” Mrs Shelton added: “It would be a shame to lose it with so many shops closing down at them moment.”
The deal to buy House of Fraser was struck through a prepack process, where a company is put into administration before a new buyer cherry-picks the best assets. The tycoon beat off competition from Philip Day, the billionaire owner of Edinburgh Woollen Mill. Mr Ashley, who, it is suggested, could also rebrand some House of Frasers under the Flannels fascia, said: “This will benefit both House of Fraser and Flannels in the luxury sector. We will do our best to keep as many stores open as possible.” Scott Lennon, of the Unite Union, has raised concerns about the impact on staff, citing pay and employment conditions for Sports Direct workers.
In the short term, it is good news for all the House of Fraser stores and staff
Nelson Blackley