House of Fraser slams ‘greedy’ landlords

House of Fraser (HoF) has criticised “greedy” landlords for resisting new owner Mike Ashley’s efforts to renegotiate rents on its 59 stores, as a number of closures loom. Around seven stores that were set to close under HoF’s pre-administration company voluntary arrangement (CVA) proposals will remain open for the time being, including Oxford Street, Plymouth, Darlington, Carlisle, Middlesbrough, Grimsby and Aylesbury. Sports Direct added that it hoped to announce more stores will continue trading this week. Ashley pledged to save 80% of the retailer’s stores after he bought the department store for £90m earlier this month. However, the retailer cautioned that time was “running out” for some stores, and that it will announce “some closures” imminently. A spokesperson for the retailer said: “Some landlords are being very collaborative in order to give us a chance at turning the business around, giving HoF 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 to convince these landlords but ultimately time is running out.” Sports Direct’s stance has been met with criticism from the British Property Federation (BPF). Melanie Leech, chief executive of the BPF, said: “What has been taking place is negotiations between HoF and its landlords – a two-party process – where each party will have its own interests and one party simply can’t cry ‘unfair’ in the media when it doesn’t get what it wants. “Many property owners are investing in and managing property on behalf of pensioners’ savings, and depend on occupiers being able to pay rent. The long-term health of our high streets also depends on this. “There will be a range of factors to consider on a store-by-store basis, but what property owners won’t be doing is simply leaving stores empty for the sake of it – that would be in no one’s interests.” The news comes as Darlington Borough Council has confirmed that its HoF store will remain open for an initial period of 12-18 months. The council added that it has offered a rate relief package to its landlord. Stephen Harker, leader of Darlington Borough Council, said: “Sports Direct will be working hard to ensure the Darlington store has a viable future, so I expect there will be changes to come, and the council will continue to work with Sports Direct to secure a long term future for both the business and building.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette Main image © Rex/Shutterstock