HOUSE of Fraser (HoF) is closing four more stores, all based in major shopping centres.
The department store chain, bought out of administration in August by Mike Ashley’s Sports Direct, will shut its Lakeside, Metrocentre, Norwich and Nottingham outlets in the New Year.
Mr Ashley said the landlord, Intu Properties, had been unwilling to reduce rents for the ailing shops.
He added that there had been “multiple meetings with Intu”.
“We were no further forward after 14 weeks. Unfortunately, these stores now face closing in the New Year. I urge other institutional landlords to be more proactive to help save the HoF stores in their schemes,” he said.
Intu confirmed it had been unable to reach an agreement with Mr Ashley.
“House of Fraser stores in our portfolio will be closing in early 2019, representing around 1% of our secured rent and 526,000 sq ft of retail space.
“We are enthusiastic about the opportunity to re-engineer and re-let this underperforming space to new and exciting alternatives.”
Another one bites the dust!
The Rent rates are astronomical in this country.
With 5 Yearly upwards only rent reviews in this country it is not even supply and demand economics.
But thats the commercial property market for you.
Mike Ashley was right to get out. A lot more to follow.
How many big retail chains does it make it that have now had to
renegotiate lower rent agreements with the big commercial property companies like British Land and Land Securities.. so on… I’ve lost count.
If I was considering a retail venture and I am not. I would look at the US. much lower rent rates. some places higher concentration of consumers…..
make my word this rent thing will effect the economy.
Commercial rates are the killer blow for business large or small. You only have to look at the recent ATM debacle
As for the Government saying there is help for small business like pubs and small traders…Bullshit. The local authority do everything they can to squeeze business…I know.
Its Leases and Business rates. We need to go to supply and demand economics.
“Government saying there is help for small business like pubs and small traders…Bullshit.”
Thatcher would turn in her grave at your betrayal . 🙂
Sorry Maggie but facts are facts. Rates, we have no choice, these are unfairly imposed upon us and ultimately feed down to higher prices to the consumer. Leases sign up or don’t…your choice.
Supply & demand economics CTB. Have we not got that with houses prices and rents…but you moan about them.
Rents are more than rates in value. Therefore a higher percentage of cost.
With 5 Yearly upwards only Ain’t supply and demand.
“Leases sign up or don’t…your choice.”
Thats why Ashley left.
More to follow.
“Supply & demand economics ”
Not really supply is limited. with land banks and lack of building or council and private property.
let small builders build. This will increase supply to meet demand.
It won’t alter rents or house prices CTB whoever builds. Supply is not limited, there are 100s of places to buy, less so to rent granted, but with all the agro that comes with renting landlords are getting out, and who can blame them. Scum tenents have made it bad for the good ones and now everybody pays the price. A bit like online shopping and the High Street.
Good on Mike Ashley I say. These big center owners will soon realise that rents will need to fall inline with customer footfall.
Look at Grays’ Town Centre, soon to be flats. Bet they won’t be affordable though.
why would anyone build flats that were not affordable??,how would they sell them??.
“It won’t alter rents or house prices CTB whoever builds. Supply is not limited, there are 100s of places to buy.”
Disagree. Every news outlet says there is a shortfall.
There are many Millions waiting to get there bit of the property owning democracy ladder. If we don’t build it will just keep increasing prices as there is too much demand.
Good on Mike Ashley I say. “”These big center owners will soon realise that rents will need to fall inline with customer footfall.”
Tied into Property value.
Thats my point lower rent/leases and thus lowers business rates.
This will give SME’s from all sectors and start ups a bigger chance of making it.
dogsdinner they would’nt why would you want to sell a flat thats not
affordable??
“It won’t alter rents or house prices CTB whoever builds. Supply is not limited”
“Look at Grays’ Town Centre, soon to be flats. Bet they won’t be affordable though.”
You may want to edit that post.
Disagree. Every news outlet says there is a shortfall.
There are many Millions waiting to get there bit of the property owning democracy ladder?
There are houses everywhere being built, and I mean everywhere.
Yes, they are affordable to some. The point here is not the people on average incomes. I don’t mind, it bumps my houses up, but those who are less fortunate, no chance.
Seriously CTB you need to take a drive around and see they are being built everywhere. If migration had been controlled it would not necessitate such major house building. I’m surprised you believe what you read in the papers being so anti establishment.
Supply and demand my friend.
Anti establishment. It pays to be throughout history.
I am glad they are being built everywhere It will help the above.