House of Fraser senior management team is ousted by boss Ashley

Mike Ashley has dismissed House of Fraser’s senior management team, just weeks after purchasing the department store chain.

The Sports Direct tycoon bought the company out of administration for £90 million in August, claiming that he wanted to turn the department store chain into the “Harrods of the high street”.

In an announcement to the London Stock Exchange after the market closed on Monday, Sports Direct said: “Following the collapse of House of Fraser on August 10 2018, and subsequent calls for an investigation into the circumstances of that collapse, the company today announces that we have dismissed the former directors and senior management of House of Fraser.”

Among those being axed include chief executive Alex Williamson. Chairman Frank Slevin has already stepped down.

Mr Ashley has previously called for an investigation into the retailer’s controversial demise.

Prior to the Newcastle United man taking over, House of Fraser was owned by Chinese conglomerate Sanpower. Laith Khalaf, senior analyst at Hargreaves Lansdown, said that Mr Ashley now has a “big job” on his hands.

“Now there is an obvious question about whether he is throwing the baby out with the bath water, is there some expertise in there and some knowledge in the business that could have proved useful and ultimately the test of that decision?” he said.

“Let’s not forget this is a company that fell into administration.

“Stores on the high street are clearly open and trading but behind the scenes this is a company that is still in difficulties, and Mike Ashley and Sports Direct have a big job on their hands.”

Meanwhile Mr Ashley remains locked in talks with landlords about rents as he aims to keep the bulk of House of Fraser’s 58 stores open.

He has been unable to save outlets in Edinburgh, Hull and Swindon after landlords refused to agree to new terms.

Mr Ashley labelled “greedy”. them