Details emerge on House of Fraser store rescue plans
Details are beginning to emerge on Sports Direct’s rescue plans for House of Fraser of stores.
According to a report by the BBC, Sports Direct’s Mike Ashley has been in talks with landlords regarding potential rent reductions after saying he would attempt to keep 80% of stores open.
The news comes just over two weeks since House of Fraser called in administrators and was subsequently acquired by Sports Direct for £90 million.
The report claims that some landlords are being offered rents equivalent to 5% of a store’s turnover, including a service charge, while “a handful” of stores are being offered the same level of rent that was being paid prior to the company’s administration.
Meanwhile, a small number of landlords are being asked to accept deals where they will be paid no rent whatsoever but will receive the service charge and have their business rates bills covered. These no rent deals will last for two years and be subject to a three month break clause after a year.
Last week it emerged that House of Fraser’s flagship store in London’s Oxford Street will remain open.
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