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Business & Economics News

House of Fraser to Cut Rent to Save Hundreds of Jobs

House of Fraser, a department store chain, plans to lower the rent of their 59 boutiques to lessen the possibility of closure, but some landlords are not happy with it.

Earlier this month, Sports Direct acquired House of Fraser for £90 million. The new management has invested a lot of effort into placing the company back at its feet after it faced a major crisis.

Mike Ashley, the founder of Sports Direct, said in a statement “they are trying their best to save as many stores as possible.” One of the steps that the management is trying to implement is cutting down the rent for different boutiques. Negotiations are taking place with the landlords of the establishment where the shops are being housed.

Reactions from different landlords varied; some are taking into consideration the company’s request, and some had already given their approval. However, in this type of industry, it is not always rainbows and butterflies.

Cutting the rent for the stores is a way for some of the shops to stay open and help save and maintain hundreds of jobs. As a matter of fact, time is running out for the company and sooner announcement for the closure of some stores will be out in the public.

Considering these facts though there are still some that turn a blind eye even if there is a tendency for the stores to close and will greatly affect hundreds of jobs- in which why they are labeled as “greedy landlords.”

Nonetheless, the organization is still trying to convince them to approve their plan and are in hopes to stop further closures of their stores.