House of Fraser’s flagship Oxford Street store will stay open after Sports Direct founder Mike Ashley signed new terms with its landlord.
The store was previously expected to close under a company voluntary arrangement that House of Fraser had announced in June, before it fell into administration. It was one of 31 stores set to close.
Ashley bought the business in a £90m pre-pack deal earlier this month. He has vowed to save at least 80% of House of Fraser’s 59 stores from closure.
This is the first deal to be agreed on a House of Fraser store since the acquisition. CBRE has been advising Sports Direct on the related property strategy.
James Keany, head of national agency at CBRE, said: “This deal happened only because all parties realised it was better to keep the store open and fully operational.
“It was a real case of landlord and tenant genuinely working together and at great speed. Everyone was sensible about the terms of the transaction.”
Michael Murray, head of elevation at Sports Direct, added: “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. Everyone must remember it was a bust business and we need landlords, councils and brands to pull together to save House of Fraser on the high street.”
Can Ashley turn House of Fraser into the Harrods of the high street?
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