House of Fraser has attacked “greedy” landlords who are refusing to cut the rents on the store chain’s 59 outlets.
Sports Direct’s Mike Ashley bought House of Fraser in a £90 million deal earlier this month, saving the group from collapse. Ashley is now attempting to cut rents of stores in an attempt to prevent stores from closing.
A spokesperson for the group said: “Some landlords are being very collaborative in order to give us a chance at turning the business around, giving House of Fraser a lifeline and saving hundreds of jobs.”
“However, some greedy landlords would rather see the stores close than help save the jobs of hundreds of people. We will continue to try and convince these landlords but ultimately time is running out. Some closures will be announced.”
So far stores that have been saved include London’s Oxford Street, Plymouth, Darlington and Middlesbrough.
Ashley, who hopes to turn the department store into the “Harrods of the high street”, has vowed to keep about 47 House of Fraser stores open.
“We will do our best to keep as many stores open as possible,” he said.
It is understood that most landlords will receive a financial hit from the rent cuts, however, Sports Direct’s proposals could be better than an earlier restructuring deal that would have resulted in 31 stores closing.
“They continue to trade, without the burden of business rates which gives them at least a year to come up with a plan,” a retail property expert told the BBC. “If the stores trade successfully, then there’s always the possibility of a better deal with Ashley down the road.”
Shares in the group (LON: SPD) are trading up 0.78 percent at 388,70 (1249GMT).