Landlords Waiting For Fate of House of Fraser Branches

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    This week, the landlords of the 59 House of Fraser (HoF) store sites will be consulted after the new owner of the troubled retailer assigned real estate advisers.

    Last week, the Sports Direct of Mike Ashley took control of the business after the firm went into administration. He has appointed CBRE as the adviser on all of its property related matters.

    According to a statement that was released by the CBRE today, the landlords will be contacted “over the following days.”

    The insolvency of HoF meant that a previous restructuring agreement to close 31 of its stores has already been declared void.

    Various landlords of the shops that are set to close were already consulting with potential new tenants or applying for a change of the use of buildings in their ownership.

    However, the property owners are now facing uncertainty regarding the future of the HoF branches as some analysts suggest that some could soon become outlets of Sports Direct.

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

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

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

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

    He continued: “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.”

    The spokesperson concluded: “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.”

    Philip Day is the owner of various fashion brands including some House of Fraser suppliers such as Jane Norman and Jaeger.