Sports Direct has sacked the entire House of Fraser senior management team. This is following Sports Direct’s acquisition of the department store chain earlier in August.
In August, tycoon Mike Ashley’s Sports Direct purchased the department store, saving it from administration. Approximately 17,500 jobs were at risk had the department store chain collapsed into administration. Sports Direct purchased House of Fraser for a price of £90 million.
The British retail entrepreneur, Mike Ashley, is also the owner of Newcastle United having purchased the club for roughly £135 million.
Sports Direct announced the dismissal in a statement:
“Following the collapse of House of Fraser on August 10 2018, and subsequent calls for an investigation into the circumstances of that collapse, the Company today announces that we have dismissed the former Directors and senior management of House of Fraser.”
House of Fraser is not the only high-street chain struggling at present.
Indeed, its rivals Debenhams and John Lewis are also facing difficulties amid the current economic climate. In fact, John Lewis reported a staggering 99% fall in its profits earlier in September.
Prior to sacking the chain’s senior management, Ashley overturned their aim to close 31 of the 59 department stores.
In order to achieve this, Ashley negotiated with British land lords to reduce rent bills. As a result, this saved 20 House of Fraser stores and 3,500 jobs. Despite this, various outlets in Edinburgh, Hull and Swindon are set to close down as negotiations with landlords were not reached.
A store in Bath is also at risk of closure as negotiations were also failed to be made.
That said, Ashley has saved a variety of House of Fraser stores from closing down. Most notably, the department store’s flagship Oxford Street store is set to remain open.
Likewise, House of Fraser stores in Altrincham, Aylesbury, Camberley, Carlisle, Darlington, Doncaster, Grimsby, High Wycombe, Lincoln, Middlesbrough and Plymouth are just a few to remain open.
At 11:37 BST today, shares in Sports Direct International PLC (LON:SPD) were trading at -0.18%.
