GLASGOW’s oldest surviving department store has been saved from closure but its future is still unclear.
House of Fraser was bought by Sports Direct owner and retail tycoon, Mike Ashley, shortly after it went into administration.
The Glasgow store is seen as the jewel in Buchanan Street’s crown is one of 59 saved from the axe, but it is not known how many will be kept open.
He moved to allay fears the firm could go down market stating said he wants Frasers to be the “Harrods of the High Street”
The flagship Glasgow store on Buchanan Street, remained closed yesterday until 11am while staff were briefed on the latest developments.
Mr Ashley paid £90m for the business its stores, assets, brand and stock after it was feared Frasers could be the latest casualty on the high street.
He said he plans to keep as many as possible stores open but some are thought will be rebranded as Sports Direct or Flannels, another Ashley owned retail business.
The deal saves the jobs of 16,000 workers which includes around 10,000 who work in the in-store concessions.
Mr Ashley said: “We will do our best to keep as many stores open as possible.
“My ambition is to transform House of Fraser into the Harrods of the high street.
“This is a massive step forward and further enhances our strategy of elevation across the group.
“This will benefit both House of Fraser and Flannels in the luxury sector.
“It is vital that we restore the right level of ongoing relationships with the luxury brands. Our deal was conservative, consistent and simple.”
No details of plans for individual stores have been released so far.
Retail experts said it was a surprise that House of Fraser didn’t hit serious trouble before now.
Tim Jackson, head of the British School of Fashion at Glasgow Caledonian University, said: “In many respects it is a surprise that House of Fraser held on for so long. It sat awkwardly in the middle market - not being able to compete the likes of John Lewis nor Selfridges.
“It was the forgotten department store.”
“It didn’t keep up with the times. Poor brand and product category selection, limited brand meaning, relevance and insufficient investment in digital and supply chain processes.
“Now Sports Direct has bought them it’s likely we’ll see a much reduced House of Fraser high street presence. It is a sad demise of a wonderful retail empire that owned Harrods at one point in the past.
“But a lack of vision, investment and finger on the pulse of changing shopping habits and competition has brought them to this point.”
Staff Glasgow went to work on Friday morning fearing the worst but have been given hope there is a future for the store the group’s oldest in the street where it was founded in 1849
The were seen on the first floor being briefed by management on the latest developments around 10.30 am.
The crisis happened after c.banner the Chinese owner of toy store Hamley’s pulled out of a deal to take on a 51% stake and invest £70 in House of Fraser.
It left the firm unable to meet forthcoming bills.
Accusations of poor management were directed at the previous owners for failing to ensure House of Fraser adapted to compete in the changing retail market.
Richard Lim, of Retail Economics, said: “The combination of rapidly rising costs against a backdrop of seismic shifts in the way we all shop is pushing traditional business models to the brink.
“The race is on to pivot business structures fast enough to be fit-for-purpose in today’s digital world.
“Individual circumstances need to be accounted for. The demise of House of Fraser in many ways has been the result of poor leadership, paralysis in innovation and crippling levels of debt.”
Union leaders have had concerns about Sports Direct employment practices and urged the new owners to talk to staff .
Dave Gill, Usdaw National Officer, said: “It is crucial that staff are treated with dignity and fairness through the transfer process and that is best done by the new owner recognising Usdaw as the trade union for House of Fraser staff. We are seeking urgent talks with Sports Direct.”
“To be successful the new owners must listen to the staff and engage them fully in turning this company around.”
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