Retail giant saves 800 jobs in £95m Frasers buyout
SPORTS Direct has vowed to create the ‘Harrods of the North’ after clinching a £95million deal to buy Glasgow’s Frasers building in a move that saves 800 jobs.
The retailer said it would continue to operate the 350,000 sq ft site as Frasers and would invest in the property to ‘further elevate and enhance this iconic department store’.
Plans for its revamp are being driven by its House of Fraser brand, which was bought by Sports Direct after collapsing into administration in August.
The company said it is ‘great news’ for the House of Fraser workforce, including the 800 in-store jobs it says have been saved.
The property is being sold by Glasgow City Council, the administering authority for Strathclyde Pension Fund.
The deal is expected to be completed in January 2020.
House of Fraser said the ‘Harrods of the North’ vision would be realised with the store continuing to sell luxury brands including Hermes, Prada and Gucci.
Michael Murray, head of elevation at Sports Direct, said: ‘We are overwhelmed and proud to own the iconic destination.
‘Acquiring the freehold enables us to elevate and invest in the store in order to partner with luxury brands.’
Susan Aitken, leader of Glasgow City Council, said: ‘A major investment on this scale is a vote of confidence in Glasgow.
‘Credit must also go to hundreds of Frasers staff who are integral to the business’s success.’
She added: ‘With the future of this retailer’s Glasgow presence secured we look forward to the new owners building on its cherished relationship with shoppers and reputation as a valued city employer for almost 170 years.’
Richard Muir, deputy chief executive of Glasgow Chamber of Commerce, said: ‘This investment is a tremendous boost for Glasgow’s retail and commercial property sectors.
‘It is testament to the city centre’s offering as a leading retail and leisure destination, with the sectors contributing
‘Testament to city centre’s offering’
£5.46billion to the region’s economy as well as generating over 33,000 full-time jobs.’
He added: ‘The purchase of the House of Fraser building will save an iconic retail destination that has been a fixture in Glasgow since 1849.
‘Buchanan Street is a prime shopping hub and is also achieving rental growth in a market that is otherwise slow, with brands including Victoria’s Secret and Nespresso setting up shop in recent months.
‘This is great news for Glasgow as we continue to evolve with the ever-changing retail market.’