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You can find the current article at its original source at https://www.theguardian.com/business/2018/aug/14/mike-ashley-house-of-fraser-stores-open-sports-direct
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| Mike Ashley says he aims to keep 47 House of Fraser stores open | Mike Ashley says he aims to keep 47 House of Fraser stores open |
| (about 2 months later) | |
| Mike Ashley is hoping to keep 47 of 59 House of Fraser stores open, partly by turning over floors of larger shops to Sports Direct or his Flannels chain, it has emerged. | Mike Ashley is hoping to keep 47 of 59 House of Fraser stores open, partly by turning over floors of larger shops to Sports Direct or his Flannels chain, it has emerged. |
| The Sports Direct owner, who is in discussions with landlords about new rent deals, said he wanted to retain 80% of House of Fraser’s stores and bring in “cool brands of the moment”. | The Sports Direct owner, who is in discussions with landlords about new rent deals, said he wanted to retain 80% of House of Fraser’s stores and bring in “cool brands of the moment”. |
| Homebase to close 42 stores, putting 1,500 jobs at risk | Homebase to close 42 stores, putting 1,500 jobs at risk |
| “We think the biggest and most important thing House of Fraser is missing is luxury brands. We think it will make a big difference,” he told the Sun. | “We think the biggest and most important thing House of Fraser is missing is luxury brands. We think it will make a big difference,” he told the Sun. |
| Ashley said that in stores such as the one in Birmingham, whole floors could be turned over to Sports Direct under his strategy for the business, which he bought out of administration for £90m on Friday. | Ashley said that in stores such as the one in Birmingham, whole floors could be turned over to Sports Direct under his strategy for the business, which he bought out of administration for £90m on Friday. |
| Sports Direct is already in talks with landlords, via the advisory services company CBRE, about rent agreements that could mean 12 closures – fewer than the 31 planned by House of Fraser’s previous owners. | Sports Direct is already in talks with landlords, via the advisory services company CBRE, about rent agreements that could mean 12 closures – fewer than the 31 planned by House of Fraser’s previous owners. |
| Among the stores that could be saved is the Oxford Street flagship in London – if the right rental deal can be agreed. | Among the stores that could be saved is the Oxford Street flagship in London – if the right rental deal can be agreed. |
| Ashley is running House of Fraser’s stores under licence from the company’s administrator, EY, so he is free to hand back the keys without penalty on any store he does not want. | Ashley is running House of Fraser’s stores under licence from the company’s administrator, EY, so he is free to hand back the keys without penalty on any store he does not want. |
| He is likely to have up to a year to arrange the reassignment of each lease and decide on the store’s future. | He is likely to have up to a year to arrange the reassignment of each lease and decide on the store’s future. |
| Gourmet Burger Kitchen: The upmarket burger chain wants to close 17 of its 85 restaurants via an insolvency process known as a company voluntary arrangement (CVA) | Gourmet Burger Kitchen: The upmarket burger chain wants to close 17 of its 85 restaurants via an insolvency process known as a company voluntary arrangement (CVA) |
| House of Fraser: The department store chain is expected to close about 12 stores after being bought out of administration by Mike Ashley. It had agreed a CVA under which 31 stores were to close, but this lapsed on administration. | House of Fraser: The department store chain is expected to close about 12 stores after being bought out of administration by Mike Ashley. It had agreed a CVA under which 31 stores were to close, but this lapsed on administration. |
| Homebase: The DIY chain is closing at least 42 stores after completing a CVA organised by new owner Hilco. The restructuring expert bought the DIY chain for £1 from Australia's Wesfarmers who botched an attempt to bring its Bunnings chain to the UK. | Homebase: The DIY chain is closing at least 42 stores after completing a CVA organised by new owner Hilco. The restructuring expert bought the DIY chain for £1 from Australia's Wesfarmers who botched an attempt to bring its Bunnings chain to the UK. |
| Poundworld: The discount retailer has closed all its 355 stores, with the loss of 5,100 jobs after falling into administration in June. | Poundworld: The discount retailer has closed all its 355 stores, with the loss of 5,100 jobs after falling into administration in June. |
| Cau: The owner of the Gaucho and Cau steakhouses fell into administration in July leading to the closure of all 22 Cau restaurants, with loss of 750 jobs. The groups lenders have since bought the 16 Gaucho outlets. | Cau: The owner of the Gaucho and Cau steakhouses fell into administration in July leading to the closure of all 22 Cau restaurants, with loss of 750 jobs. The groups lenders have since bought the 16 Gaucho outlets. |
| Mothercare: The chain is closing 60 of its 137 outlets after agreeing a CVA in May. Additional closures in July mean 900 jobs will be lost. | Mothercare: The chain is closing 60 of its 137 outlets after agreeing a CVA in May. Additional closures in July mean 900 jobs will be lost. |
| Carluccio's: The Italian chain secured a CVA to close 30 of its 99 restaurants in late May. | Carluccio's: The Italian chain secured a CVA to close 30 of its 99 restaurants in late May. |
| New Look: The chain is closing 85 stores in a restructuring plan announced earlier this year. Its chairman, Alistair McGeorge, said the future of a further 39 stores was in doubt as talks with landlords continued. | New Look: The chain is closing 85 stores in a restructuring plan announced earlier this year. Its chairman, Alistair McGeorge, said the future of a further 39 stores was in doubt as talks with landlords continued. |
| Carpetright: The retailer obtained a CVA in April to close 92 of its 409 UK stores in September with the loss of about 300 jobs. | Carpetright: The retailer obtained a CVA in April to close 92 of its 409 UK stores in September with the loss of about 300 jobs. |
| Prezzo: In March the Italian-themed restaurant group secured a CVA to close 94 of its 300 restaurants, with the loss of 500 jobs. Rent cuts were agreed on a further 57 locations. | Prezzo: In March the Italian-themed restaurant group secured a CVA to close 94 of its 300 restaurants, with the loss of 500 jobs. Rent cuts were agreed on a further 57 locations. |
| Jamie’s Italian: The chain closed six locations in 2017 and this year agreed a CVA to close about a third of its 35 loss-making outlets. | Jamie’s Italian: The chain closed six locations in 2017 and this year agreed a CVA to close about a third of its 35 loss-making outlets. |
| Byron: The upmarket burger chain is closing up to 20 of its 67 restaurants after a CVA agreed in January. | Byron: The upmarket burger chain is closing up to 20 of its 67 restaurants after a CVA agreed in January. |
| Debenhams: The under-pressure department store chain has said it could close up to 50 of its 165 stores stores and wants to get rid of space at 30 more by bringing in gyms and other services. | Debenhams: The under-pressure department store chain has said it could close up to 50 of its 165 stores stores and wants to get rid of space at 30 more by bringing in gyms and other services. |
| M&S: The high street stalwart wants to close 100 outlets – a third of its main stores by 2022 as part of a 'radical transformation' plan. | M&S: The high street stalwart wants to close 100 outlets – a third of its main stores by 2022 as part of a 'radical transformation' plan. |
| It has also emerged that a group of five landlords were awarded a £1m cash pay out as part of an out of court settlement with House of Fraser’s former owners, relating to a company voluntary arrangement agreed just before the department store fell into administration. However, the landlords were only paid £100,000 before the company went bust according to Drapers, the fashion industry trade journal. | It has also emerged that a group of five landlords were awarded a £1m cash pay out as part of an out of court settlement with House of Fraser’s former owners, relating to a company voluntary arrangement agreed just before the department store fell into administration. However, the landlords were only paid £100,000 before the company went bust according to Drapers, the fashion industry trade journal. |
| While Ashley, and Sports Direct’s “head of elevation”, Michael Murray, the fiance of his daughter Anna, are expected to cut tough deals with landlords in the coming weeks, suppliers are having a much rougher ride. | While Ashley, and Sports Direct’s “head of elevation”, Michael Murray, the fiance of his daughter Anna, are expected to cut tough deals with landlords in the coming weeks, suppliers are having a much rougher ride. |
| A son-in-law with big plans to take Sports Direct upmarket | A son-in-law with big plans to take Sports Direct upmarket |
| Sports Direct has written to suppliers – due to be paid this week and thought to be owed more than £60m – informing them they will only be paid once the firm comes out of administration. The suppliers had hoped Ashley would honour their debts in the interests of good relations in the future. | Sports Direct has written to suppliers – due to be paid this week and thought to be owed more than £60m – informing them they will only be paid once the firm comes out of administration. The suppliers had hoped Ashley would honour their debts in the interests of good relations in the future. |
| The £90m paid by Ashley went towards paying House of Fraser’s bondholders and banks, with other creditors not expected to receive more than 3p in the pound from administrators. | The £90m paid by Ashley went towards paying House of Fraser’s bondholders and banks, with other creditors not expected to receive more than 3p in the pound from administrators. |
| One supplier told the Guardian: “It is very, very concerning. Ashley is trading the stores on the back of suppliers’ money. We were hoping he would give us back something.” | One supplier told the Guardian: “It is very, very concerning. Ashley is trading the stores on the back of suppliers’ money. We were hoping he would give us back something.” |
| Pensioners are also likely to lose out under the deal. The House of Fraser pension fund has not been taken on by Ashley and so will be assessed by the industry-funded lifeboat, the Pension Protection Fund. | Pensioners are also likely to lose out under the deal. The House of Fraser pension fund has not been taken on by Ashley and so will be assessed by the industry-funded lifeboat, the Pension Protection Fund. |
| It is likely to be sold to a specialist insurance fund, but the higher costs involved in that process mean the House of Fraser fund could be more than £160m in deficit, so members yet to draw a pension will not get their full benefits. | It is likely to be sold to a specialist insurance fund, but the higher costs involved in that process mean the House of Fraser fund could be more than £160m in deficit, so members yet to draw a pension will not get their full benefits. |
| House of Fraser | House of Fraser |
| Sports Direct International | Sports Direct International |
| Mike Ashley | Mike Ashley |
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