‘Greedy landlords’ to blame for House of Fraser closures, says new owner
of Fraser is set to announce a spate of store closures this week, with new owner Mike Ashley blaming “greedy landlords” for potentially hundreds of job losses.
The Sports Direct tycoon, who recently bought the department store chain out of administration for £90 million, has been in tense talks with landlords over rents in recent weeks. Those negotiations have resulted in around seven House of Fraser outlets being saved from closure, including in Oxford Street, Telford and Plymouth.
However, the tracksuit billionaire warned yesterday “time is running out” for the remainder of the 59-store estate.
A spokesman for House of Fraser said: “Some landlords are being very collaborative in order to give us a chance at turning the business around, giving House of Fraser a lifeline and saving hundreds of jobs.
“However, some greedy landlords would rather see the stores close than help save the jobs of hundreds of people.
“We will continue to try and convince these landlords, but ultimately time is running out. Some closures will be announced.”
It is understood landlords are reluctant to agree to the low rents Mr Ashley is demanding. Mr Ashley, who also owns Newcastle United, has pledged to save around 47 of House of Fraser’s 59 outlets since buying the chain.
He recently struck a deal to save House of Fraser’s flagship store in Oxford Street.
Mr Ashley said: “It is a massive step forward and further enhances our strategy of elevation across the group.
“My ambition is to transform House of Fraser into the Har- rods of the high street. “We will do our best to keep as many stores open as possible.”
Edinburgh’s House of Fraser store on Princes Street in the West End is set to close on 15 September after the landlord served notice to quit.
The retailer owns three other stores in Scotland.
The remaining outlets north of the Border are Jenners department store on Princes Street and separate shops in Glasgow and Loch Lomond.