Sports Direct seals purchase of its ‘Harrods of the North’

SPORTS Direct has acquired the famous Frasers building from Glasgow city council for £95m, saving 800 jobs in the House of Fraser workforce.

The flagship store on Buchanan Street, obtained through the House of Fraser brand, will continue to operate as Frasers, as the company plans to “further elevate and enhance” the department store.

The retailer said it would transform the 350,000 square foot shop into the “Harrods of the North”, with a plan to add more luxury brands alongside existing lines such as Hermes, Christian Louboutin, Prada and Gucci.

The deal is expected to be completed by January 2020.

“We are overwhelmed and proud to own such an iconic destination,” said Michael Murray, fiancé of the daughter of Sports Direct’s owner Mike Ashley, who has been put in charge of the company’s property portfolio.

Sports Direct bought House of Fraser for £90m in August after it collapsed into administration, and promptly scrapped plans to close 31 of the company’s 59 stores.

After negotiations with landlords 20 stores that had been earmarked for closure were saved.

Discount tycoon Mike Ashley, who owns the sports retailer, pledged to transform House of Fraser into the “Harrods of the High Street”.

Kevin Sims of CBRE, who represented House of Fraser during the Frasers acquisition, said it was a “fantastic deal for Glasgow and Scotland”.

“It is an iconic store and much of the success of Buchanan Street over the last 20 years has been built around having Frasers as an important anchor tenant for the street,” he said.

Susan Aitken, leader of Glasgow City Council, said the investment was a “clear vote of confidence in Glasgow”.

The listed building was the first store to be opened by original founders Hugh Fraser and James Arthur in 1849.