House of Fraser’s flagship store on London’s Oxford Street is being saved from closure according to its new owner.
It was announced this morning that the iconic department store location, which had previously been earmarked for closure under House of Fraser’s CVA, will stay open and continue to be “fully operational”.
After falling into administration on August 10, high street mogul and Sports Direct owner Mike Ashley bought the company in a pre-pack deal hours later for £90 million, vowing to keep 80 per cent of stores open.
Although details of the stores which will be closed under the new ownership are not yet clear it served to alleviate fears that the CVA, which was set to see 31 of House of Fraser’s 59 stores close, would go ahead as planned.
“This deal only happened because all parties realised it was better to keep the store open and fully operational,” head of national agency at CBRE, which is advising Sports Direct on all its newly acquired properties, James Keany said.
“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.”
Head of elevation at Sports Direct Michael Murray 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.”