Owner of Sports Direct, Mike Ashley, said that greedy landlords were responsible for the closure of House of Frayer stores in three places. However, he said that 15 stores would stay open. However, the stores in Hull, Edinburgh, and Swindon will close after negotiation of rental cut was over. He said that landlords were partly responsible for the closure. They hit back, he said, as they were trying to defend their best rights, when it comes to the rental costs.

Actually, Mike Ashley had made several attempts to safeguard the employees. More than 3.500 employees are working for House of Fraser. If the stores are closed, many people will lose their jobs. Accordingly, he reported that at least 20 stores had come to a new agreement of rental costs. This way, the company can still provide jobs for thousands of staff.

Behind the Closure of House of Fraser Stores

Besides the three House of Frayer stores, the fourth one in Bath will reportedly follow, but the management still attempts to negotiate a new rental terms. Meanwhile, the company still has to deal with hundreds of staff that previously worked for the three stores.  After buying House of Frayer, Mike Ashley was pretty sure that the stores would remain open.

The Sports Direct bought all stores owned by House of Frayer, including 31 stores, which were reportedly in the process of closure. They were previously under restructuring plan, but the company decided to abandon it. For him, a number of landlords refused to be reasonable. He is very disappointed because of the fact.

Actually, Mike Ashley, who is known not only for the Sports Direct. Actually, he owns Newcastle United football club, also thanks the landlords who had been willing to negotiate for the rental rates. As a result, the could safeguards 3.500 jobs for the staff.

Closure of House of Fraser Stores: Result of Unfairness?

Negotiation over the rental costs was represented by the British Property Federation. The federation defended their right for the best deal. The Chief Executive, Melanie Leech, also confirmed that negotiation was under process between House of Fraser and the property owners. Of course, every party has its own interests and try to defend them.

According to Melanie Leech, most of the property owners invested their pension funds for the property to safeguard their old days. They do not want to let the property empty, but also wanted the best rate for them. She said that many other stores had to be defended. They include one in Birkenhead owned by Frank Field. The property owner had been negotiating with Mike Ashley over the treatment for the staff of House of Frayer.

Of course, there are always solutions for the problem. Negotiation between both parties, with or without the help of a third party, can result in win-win solution.  Discussions with positive hearts certainly put the conflicts of interests away. On the top of them, positive negotiation can safe the jobs for thousands of people. Loss of job can negatively affect the employees.