House of Fraser management are dismissed by Sports Direct chiefs
Sports Direct has dismissed the directors and senior management of House of Fraser weeks after purchasing the department store chain.
Mike Ashley bought the company out of administration for £90 million, with the tycoon saying he wanted to turn the 58 House of Fraser stores into the “Harrods of the high street”.
In a one-sentence announcement to the London Stock Exchange, 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.”
Mr Ashley has been in talks with landlords around the country about rents as he aims to keep stores open.
The company has been unable to save outlets in Edinburgh, Hull and Swindon after landlords refused to agree to new terms.
Richard Lim, of consultancy Retail Economics, said the dismissal showed there was a “momentous challenge at hand”.
He said: “Drastic action has been taken following a series of woeful management decisions, clumsy execution and an outdated perception of the UK market.
“The new management team will need to prioritise right-sizing initiatives and utilise any excess space to sweat assets more effectively in a move become fit-for-purpose in today’s digital age.”