Sports Direct deal saves four House of Fraser stores

Four House of Fraser stores have been saved after Sports Direct struck a deal with the shopping centre giant Intu.

The department stores in the Norwich, Metro Centre, Lakeside and Nottingham malls – which were due to close in early 2019 – will now continue to trade, saving more than 1,000 jobs.

It was reported last year that talks between Intu and Sports Direct founder Mike Ashley had descended into acrimony, with the sportswear tycoon threatening to pull all of its brands out of the company’s centres.

“Intu has demonstrated it is unwilling to help retailers save stores and jobs,” he said at the time. The threat would have affected 15 stores, including branches of Sports Direct and Evans Cycles, in Intu centres.

“After the stalled talks with Intu we are happy to announce that we have come to an agreement that will help secure the future of House of Fraser Intu stores in Norwich, Metro Centre, Lakeside and Nottingham,” said Sports Direct’s head of elevation, Mike Murray.

“This is great news for over 1,000 employees whose jobs have now been saved.”

Intu said that following “constructive” discussions with Sports Direct it had reached an “interim agreement” with the retail group.

Ashley snapped up the stricken department store chain for £90m last summer but is still finalising how many of its 59 stores will continue to trade. To date, it has made deals on 37 stores with Ashley also acquiring the landmark Frasers building in Glasgow for £95m.

Last year, nearly 600 jobs were saved at landmark Manchester department store Kendals after the local council intervened to prevent its closure.

The 182-year old House of Fraser store, in Deansgate, was set to close down in January 2019 after Ashley’s Sports Direct.

However, the billionaire retailer said that a deal had been reached, with Manchester city council playing an “instrumental” role.

TNT Business

Photo Credit: 5 News

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