House of Fraser to keep Oxford Street flagship

HOUSE of Fraser’s flagship store on London’s Oxford Street has been saved from closure by new owner Sports Direct.

The troubled department store chain was bought out of administration for £90m by billionaire Mike Ashley, who owns Sports Direct. He has vowed to keep 80pc of the 59 stores open and transform it into the “Harrods of the high street”.

The Oxford Street store was one of 31 outlets set to close through a company voluntary arrangement before the retailer entered administration.

Michael Murray, Sports Direct’s head of elevation, said: “We said we would keep as many stores open as possible, and in less than a week we have saved the biggest store. Oxford Street was meant to close in January and now it’s safe, which is great news for all parties.”

The deal for the House of Fraser site to remain open was struck by property agent CBRE.

James Keany, of CBRE, said: “This deal only happened because all parties realised it was better to keep the store open and fully operational.” It came after 627 jobs were put at risk at warehouse operator XPO Logistics following a standoff with Mr Ashley over the £30.4m it was owed following the House of Fraser collapse.

The chain was forced to cancel all online orders after XPO, which operates its Milton Keynes and Wellingborough warehouses, refused to fulfil orders because of the dispute. Meanwhile, Mulberry said on Monday that the retailer’s administration could cost it as much as £3m, causing its shares to plunge nearly 30pc.

EY was appointed administrator of House of Fraser after attempts to secure a solvent sale failed. It sealed an agreement with Mr Ashley on the same day.