Billionaire retail mogul Mike Ashley vows to save 80% of House of Fraser stores after purchasing chain for £90million
More than half were set for closure before Ashley, 53, took over last Friday — and he insisted there were brighter days ahead
BILLIONAIRE retail mogul Mike Ashley has vowed to save most House of Fraser stores from the axe after his rescue of the stricken chain.
In his first interview since his Sports Direct firm bought the department store for £90million, the controversial owner of Newcastle United yesterday told The Sun he would try to keep 80 per cent of the 59 outlets open.
So confident is he of achieving his target that he added: “In a year’s time you can hold my feet to the fire on that.”
More than half were set for closure before Ashley, 53, took over last Friday — and he insisted there were brighter days ahead thanks to his ambitious vision to turn the 169-year-old chain into the Harrods of the high street.
He explained: “In Harrods you get some exceptional services. What we would like to do is introduce a ‘concierge click and collect’ at House of Fraser.
“When you go online and say you want to collect goods in-store, you should be able to book a time, book a changing room and book a stylist.
“You get that kind of personal shopping service in a Harrods. There’s no reason why it couldn’t be rolled out nationally across House of Fraser.”
Sports Direct, which already held an 11 per cent stake, bought House of Fraser outright just hours after it went into administration.
It was left on the brink of collapse after the Chinese owner of toy store Hamleys pulled out of a £70million rescue deal.
House of Fraser, which its new owner affectionately calls “HoF”, employs 17,000, including 11,500 in-store concession staff.
Ashley, who is worth around £3billion, believes the key to securing its future is to introduce more luxury brands.
He added that big-hitters such as Gucci, Prada, Stone Island and Mallet footwear were “the biggest thing missing” as House of Fraser ran into the red.
Drawing on his experience with designer chain Flannels, which is owned by Sports Direct, he intends to stock House of Fraser with successful “cool brands of the moment”.
He said: “We think the biggest and most important thing House of Fraser is missing is luxury brands. We think it will make a big difference.
“It is not taking away from House of Fraser, but adding to it.
“If you get the right product, it is not on the shelves for long.”
Larger House of Fraser stores, such as the one in Birmingham, could see whole floors turned over to Sports Direct or Flannels, Ashley added.
Among the stores that could be saved from closure is the Oxford Street flagship in London — if landlords and suppliers can be won over.
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Ashley admitted that landlords have been “battered and bruised” by a raft of retail tenants seeking rent reductions this year.
In a message to them, he said: “Give us a chance and we will try to keep as many open as we can. We are here to get House of Fraser back to where it once was.”
However, some analysts are sceptical that the colourful billionaire can pull it off.
Independent retail analyst Nick Bubb warned: “It is far from clear if he really knows what he has taken on.”
Boss talks good game
IT is easy to fall for Mike Ashley’s compelling vision for House of Fraser, writes TRACEY BOLES.
But his ambitious plans are borne of experience.
He has pledged to fill House of Fraser with brands that fly off the shelf for him at Flannels and Sports Direct.
Plus, a Harrods-style personal shopping service would bring another touch of style to regional shopping centres. The potential fly in the ointment is the chain’s landlords, already fending off the pleas of desperate tenants to reduce rent amid the wider struggles of the high street.
Let’s hope Ashley can convince them to come with him and buy into his vision as he strives to return “HoF” to where it once was.
House of Fraser
HOUSE OF FRASER lost its way but Ashley wants to take it upmarket with more luxury bestsellers, brands popular with younger customers and a personal shopper service.
Flannels
High-end designer chain FLANNELS specialises in luxury fashion clothing and accessories for men and women. Ashley first bought into the retailer in 2012 and it is continuing to expand.
Sport's Direct
SPORTS DIRECT’s superstores are full of popular brands, including Lonsdale and Donnay. Dozens more outlets are planned as Ashley bids to turn it into the “Selfridges of sport”.