The flagship store of retailer House of Fraser has been saved from closure after the new owner of the chain agreed revised terms with the landlord.
A report by the BBC said property giant CBRE, which is advising Sports Direct International PLC (LON:SPD), had said the negotiations around the store had been conducted with “great speed” and that the deal “had only happened because all parties realised it was better to keep the store open and fully operational”.
The store had originally been due to close as part of a restructuring plan after the group collapsed into administration earlier this month before being bought by Sports Direct owner Mike Ashley for £90mln.
Ashley’s plan is to keep 80% of House of Fraser’s 59 stores open across the UK, with Ashley saying he intended to turn the store chain into “the Harrod’s of the High Street”.
The announcement will come as little comfort to the department store’s suppliers, who are owed around £484mln that they are unlikely to see as Sports Direct is not obliged to pay them.
In mid-morning trading, Tuesday Sports Direct shares were down 0.2% at 385.8p.