I really hope House of Fraser and Debenhams continue to trade, but I think the best way would be to break up the chains into smaller ones to serve their respective areas more efficiently. This would also help protect the brand image and return nostalgic names that if done correctly could save more jobs and slow the decline of the high street. Each group of stores could have more control of what they sell to the customers in their location. With Mike Ashley buying so many retailers, there will be a point when making acquisitions will result in cost cutting, especially as Sports Direct regrets buying House of Fraser and even on zero rents they say some stores run at a loss.
House of Fraser stores in City of London and Hull have closed and as many of two thirds of stores could close in the next few months BEFORE Christmas.
As the previous owners sold off the stores they owned and put them on lease back plans unsustainable resulting in the administration. It means administrators are currently managing the property on a month by month basis with amount paid varying.
If the property had still been owned outright, the chances are stores would have fared much better, despite their under-invested state of repair and decoration. There is a lot of architecture that is now going to be hidden away through re-purposing or gone forever with demolition as many of these stores are pre 1960's.The over expansion and shopping centre stores in the last 30 years are probably most at risk, but of course ANY and EVERY store is going to be under review.
When Mike Ashley says the problems with House of Fraser are "Terminal" I think it is the leases that these stores now have along with the business rates which for many stores doubled.
This book is Copyright of House of Fraser plc, 1989
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