Future of House of Fraser store still uncertain
OWNER SAYS MORE SHOPS WILL CLOSE
RETAIL tycoon Mike Ashley has admitted more House of Fraser stores will close – but it is not clear whether Huddersfield’s Kingsgate store will be one of them.
Kingsgate Centre boss Peter Everest has stayed tight-lipped on what Mr Ashley’s announcement could mean for the centre’s flagship tenant.
The Sports Direct and Newcastle United owner bought House of Fraser when it went into administration just over a year ago.
Since then seven outlets have been closed – leaving 52 – but the Huddersfield store has survived.
Mr Ashley told shareholders yesterday that some unprofitable House of Fraser stores would close despite “green shoots of recovery” in the business.
He said: “We are doing as much as we can to realistically save as many jobs and stores as possible. However, despite our best efforts, there are still a number of stores which are currently paying zero rent and that are unprofitable and thus not sustainable.”
When his group took over House of
Fraser last year, Mr Ashley signed deals with some landlords who accepted low or no rent, rather than have to take back the properties and be liable to pay business rates themselves.
Last year plans were submitted to scale down the size of the House of Fraser store in Kingsgate, creating a nine-screen cinema in the upper level and food or restaurant outlets at the bottom.
Peter Everest, managing director of WD Ltd, who own the Kingsgate Centre, refused to comment when approached by the Examiner.