House of Fraser and Intu agree deal to save four stores from closure

By

Barbara Santamaria

Published
Jan 23, 2019

All four House of Fraser stores located within Intu shopping centres will remain open, it was announced on Wednesday as the mall owner reached a deal with Sports Direct.

The stores at Chapelfield in Norwich, Lakeside in Thurrock, Metrocentre in Gateshead and Victoria Centre in Nottingham had been earmarked for closure by Sports Direct, which acquired House of Fraser immediately after it fell into administration.

The 169-year-old chain was preparing to close the stores in early 2019 after failing to agree terms in November, however an Intu spokeman confirmed on Tuesday that the companies had  reached “an interim agreement”.

“We are committed to working with all our retailers to ensure they are perfectly placed to showcase their brands and draw in shoppers,” he said.

“We confirm that following constructive discussions with Sports Direct, we have reached an interim agreement on four House of Fraser stores at Intu Chapelfield, Intu Lakeside, Intu Metrocentre and Intu Victoria Centre.”

So far, Sports Direct has managed to save 25 House of Fraser stores, protecting more than 3,500 stores. However, at least eight branches of the retailer’s 59 outlets are still due to close.

Sports Direct pledged to save as many as 47 House of Fraser stores when it acquired the brand in August. The company’s chief executive Mike Ashley has talked of transforming the retail chain into the “Harrods of the high street”.