Ashley’s ‘threat’ to shut Tyneside shops
MAGPIES TYCOON IN RENT ROW WITH STORE LANDLORDS
BILLIONAIRE Mike Ashley is said to have threatened to close all his stores at Eldon Square and Metrocentre amid a dispute with landlord Intu Properties.
The retail tycoon and Newcastle United owner has reportedly warned he will bring down the shutters of the 15 stores he currently has open at Intu Properties sites around the UK.
That would include Sports Direct,
House of Fraser, Flannels, USC and Evans Cycles outlets in the shopping centre firm’s centres – and would affect USC in Newcastle’s Eldon Square, plus Flannels in the Metrocentre, on top of the House of Fraser store which will close next year. According to reports, Mr Ashley has been involved in a rent row with Intu in a bid to secure better deals for four House of Fraser stores, in which he wanted to pay little or no rent for House of Fraser at Intu’s Lakeside, Nottingham, Norwich and the Metrocentre.
Mr Ashley claims closing all of his stores at the centres – when leases reach a break clause or expire – will cost millions a year in lost rent and service charges.
He told the Sunday Times: “Intu has demonstrated it is unwilling to help retailers save stores and jobs.
“It is unrealistic for Intu to continue to enjoy a long-term relationship with our retail businesses.”
The news comes days before Intu could receive a £2.8bn takeover bid from a consortium led by property tycoon John Whittaker, CEO of the Peel Group which owns Durham Tees Valley Airport.
Intu has extended the deadline for the consortium to ‘put up or shut up’ three times, with the most recent deadline ending at 5pm on Friday.
Mike Ashley owns House of Fraser, Sports Direct, USC, Flannels and Evans Cycles.
He also has stakes in Debenhams, French Connection, Agent Provocateur and Game Digital.