Landlords await House of Fraser branch closure plans company appoints real estate advisors

House of Frazer CVA

Landlords of the 59 House of Fraser (HoF) sites will be consulted this week after the retailer’s new owner hired real estate advisers.

Mike Ashley’s Sports Direct, which took control of the business last week after it went into administration, has appointed CBRE to advise on all property related matters.

Landlords will be contacted “over the following days”, according to a statement made by CBRE today.

HoF’s insolvency meant a previous restructuring agreement to close 31 stores has now been rendered void.

It is understand that several landlords of shops due to close were already consulting with prospective new tenants or applying to change the use of buildings in their ownership.

But property owners are now facing uncertainty over the future of HoF branches as analysts suggest some could become Sports Direct outlets.

Meanwhile Ashley has been urged to pay money owed to suppliers who have been left out of pocket by the chain’s administration.

Edinburgh Woollen Mill owner Philip Day, who was also bidding for HoF, said he hoped Ashley would do the “honourable thing” and repay suppliers in full.

A spokesperson for Day said the retail billionaire was “delighted” House of Fraser has been rescued and jobs saved.

“House of Fraser is an outstanding business with a rich and proud heritage, which was bought conservatively as Mr. Ashley has recognised,” said the spokesperson.

“Given that fact, Mr. Day would hope that Mr. Ashley does the honourable thing and pays all suppliers and concessionaires on date and in full.”

They added: “Mr. Ashley has said that relationships with brands and partners are vital to the future of House of Fraser, and ensuring that bills are settled with concessionaires will be critical to maintaining those relationships.”