House of Fraser has blamed “greedy landlords” for resisting new owner Mike Ashley’s attempts to negotiate lower rents in order to save stores from closure.
House of Fraser has blamed “greedy landlords” for resisting new owner Mike Ashley’s attempts to negotiate lower rents in order to save stores from closure.
The Sports Direct and Newcastle United owner bought the retailer for £90m earlier this month after it fell into administration.
A House of Fraser spokesman said: "Some landlords are being very collaborative in order to give us a chance at turning the business around, giving House of Fraser 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 and convince these landlords but ultimately time is running out. Some closures will be announced."
Ashley had previously pledged to keep 80% of its 59 stores open.
Melanie Leech, chief executive of not for profit property organisation the British Property Federation, seemed unimpressed with the "greedy" accusation.
She said: “What has been taking place is negotiations between House of Fraser 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.”
