Proactive Investors - Run By Investors For Investors

Sports Direct buys House of Fraser property in Glasgow

Sports Direct wants to turn Frasers into the "Harrods of the North"
House of Fraser
The Glasgow outlet's future looks safe; others might not make the grade, however

Sportswear flogger Sports Direct International PLC (LON:SPD) has acquired a property in Glasgow from which the House of Fraser trades.

The company has agreed to acquire for £95mln the heritable interest in 21/31 Buchanan Street, 8 & 24/28 Mitchell Street, 140/142 Argyle Street, 148/152 Argyle Street, 35/53 Buchanan Street and 34/50 Mitchell Street, Glasgow from Glasgow City Council as administering authority for The Strathclyde Pension Fund.

READ: Batch of House of Fraser stores look set to close this week, with Sports Direct boss Mike Ashley blaming “greedy landlords”

Sports Direct intends to continue to operate the property as Frasers, thereby reportedly saving 800 jobs, and said it would invest in the property “to further elevate and enhance this iconic department store”.

“We are overwhelmed and proud to own such an iconic destination. Acquiring the freehold enables us to elevate and invest in the store in order to partner with a broad range of luxury brands in future,” said Michael Murray, who is head of something called “elevation” - quite possibly he is a lift operator – at Sports Direct.

Susan Aitken, the leader of Glasgow City Council, claimed that Glasgow is the UK’s number one retail centre after London and that the House of Fraser store on Buchanan Street “is a city institution, much loved by generations of Glaswegians”.

“A major investment on this kind of scale is a clear vote of confidence in Glasgow; and credit must also go to hundreds of Fraser’s staff, who are absolutely integral to the business’ success and its enduring popularity with city shoppers,” she said.

Completion is to take place in January 2020.

View full SPD profile View Profile

Sports Direct International PLC Timeline

Related Articles

Scans and MRI
November 28 2018
The firm's subsidiary, Imaging Biometrics, recently appointed a South Korean distributor a few weeks after receiving the first commercial order for its StoneChecker technology
"The group's performance over the past three years demonstrates the continuing success of our strategy to access more customers and markets," said chief executive John Nichols.
December 18 2018
MetroRod has been in operation for 30 years but only became a franchise relatively recently

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use