Mike Ashley is struggling to agree terms with the landlords of House of Fraser’s prime stores — undermining a key plank of his turnaround strategy.
Lowball offers from the billionaire retailer, who bought House of Fraser out of administration last month, have turned the talks into a “game of chicken”, said a property source. Ashley has still to agree new terms with landlords on more than 30 stores.
On some of the 20 stores where terms have been agreed, the Sports Direct boss is said to have secured one-year leases with rent cuts of up to 70%. In other instances he is thought to be offering to pay business rates but no rent — capitalising on weak demand for large retail units.
