House of Fraser’s flagship store on Oxford Street saved from the chop as Mike Ashley embarks on turnaround plan
- The Oxford Street store was due to close under the CVA announced in June
- Sports Direct said: ‘In less than a week we have saved the biggest store’
House of Fraser’s flagship store on London’s Oxford Street has been saved from the chop as Mike Ashley begins to put his plans for the chain into action.
The struggling department store collapsed into administration last week before being snapped up by Mike Ashley’s Sports Direct company in a ‘pre-pack’ deal.
The key Oxford Street store had previously been due to close under the company voluntary arrangement announced in June.
The flagship Oxford Street store had previously been due to close under the company voluntary arrangement (CVA) announced in June
James Keany, head of national agency at CBRE, the real estate firm which is advising Sports Direct on matters regarding HoF, said: ‘This deal only happened 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.’
This is the first deal to be agreed on a House of Fraser store since Sports Direct stepped in.
Michael Murray, Sports Direct’s head of elevation, suggested the speed with which the deal was struck showed a commitment to turn around the House of Fraser business.
He said: ‘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.’
The CVA agreed with landlords earlier this year was set to lead to the closure of half of all HoF stores, with 6,000 jobs at risk, before Ashley’s deal to take the reins was struck.