House of Fraser: Flagship Oxford Street store to remain open

Retailer Sports Direct has confirmed plans to spare House of Fraser’s Oxford Street store from closure.

The flagship London site was one of 31 of the chain’s 59 branches due to shut in a bid to keep the business afloat – a move that would have axed 6,000 jobs.

But when House of Fraser fell into administration earlier this month, the plan fell to the wayside.

Hours later, billionaire businessman Mike Ashley, owner of retailer Sports Direct and football club Newcastle United, saved the company through a £90m buyout.

Real estate services firm CBRE is advising Sports Direct on all property matters related to House of Fraser.

Commenting on the deal to keep the Oxford Street shop open, James Keany, senior director at CBRE, 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.”

Mr Ashley is yet to confirm how many of the other 30 stores in line for closure will stay open.

When he acquired House of Fraser, he promised to try “to keep as many stores open as possible” and said his aim is to turn the brand “into the Harrods of the high street”.

Sports Direct’s head of elevation, Michael Murray, commented: “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.”

He continued: “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.”

According to professional services giant EY, appointed administrators for the department store chain, the business owed £484m to creditors before its collapse.

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