Sports Direct, which is controlled by the tycoon Mike Ashley, has dismissed the former directors and senior management of House of Fraser, less than two months after buying the department store group from its administrators.
In a brusque statement issued to investors after the London stock market closed on Monday, Sports Direct said: “Following the collapse of House of Fraser on August 10 2018, and subsequent calls for an investigation into the circumstances of that collapse, the company today announces that we have dismissed the former directors and senior management of House of Fraser.”
Ashley, the owner of Newcastle United Football Club, bought the department store out of administration for £90m in August. One of his first moves was to tear up the previous management team’s plan to close 31 of House of Fraser’s 59 stores.
After negotiations with landlords around Britain to reduce rent bills, 20 House of Fraser stores have been saved from closure, safeguarding about 3,500 jobs.
However, outlets in Edinburgh, Hull and Swindon will shut after Ashley failed to agree terms with landlords. A fourth store, in Bath, is also at risk of closure as Ashley negotiates with the city council, the store’s landlord, over rental terms.
Others that have been saved from closure include House of Fraser’s flagship Oxford Street store and outlets in Altrincham, Aylesbury, Camberley, Carlisle, Darlington, Doncaster, Grimsby, High Wycombe, Lincoln, Middlesbrough, Plymouth, Skipton, Telford, Huddersfield, Leeds, Maidstone, Solihull and Sutton Coldfield.
