14 Business DECEMBER 2018
FEATURE
H
ouse of Fraser’s
landmark
Manchester store
has been saved
from closure after
the landlord agreed
new rates with
owner Mike Ashley.
House of Fraser confirmed that the
flagship store would continue trading
- also securing the jobs of the 568
people who work there.
It is understood Manchester council
has been mediating between Mike
Ashley and the landlords to reduce the
sky-high rent of £4.36m a year.
A council spokesman said:
“Manchester City Council was
instrumental in positively working
alongside House of Fraser and the
landlord to help secure the future of
this store.
“Approximately 568 jobs have been
saved and one of the region’s most
iconic department stores lives on.”
Sir Richard Leese, Leader of
Manchester City Council, said:
“Today’s announcement is fantastic
news for the city and I am proud that
the council has been able to play a
constructive role in saving a real
Manchester icon and hundreds of jobs.
“I’d like to thank all involved for their
positive engagement in this process.”
Sports Direct billionaire Mike Ashley,
who bought House of Fraser for £90m
in August, added: “This demonstrates
that when landlords, local authorities
and retailers work together the
outcomes can be outstanding.
“When working together we can
make a real difference to the high
street.”
Ram Rasiah, who represented House
of Fraser during negotiations,
described the result as a ‘significant
deal’ for Manchester.
The development marks a dramatic
turnaround after staff were told on
October 19 that the store would be
closing in January.
Customers arrived that morning to
find the doors shut.
The M.E.N was then the first to report
the news that the famous department
store was due to shut its doors after 180
years of trading.
It sparked a huge reaction from
customers and leaders in the region
who vowed to do all they could to keep
Kendals saved from axe
after deal with landlord
Kendals, as it has always been known,
open.
Among them were Manchester
councillors Pat Karney and William
Jeavons.
Coun Karney tweeted: “Wow. Just
heard. Kendals Saved.560 jobs saved.
Happy Christmas Kendals Staff.
“We have talked to so many
distraught staff over the last few weeks.
“We are so pleased for all the staff
who can now have a great Christmas.
Bring back the Kendals name.”
Ashley has also called for a new taxon online retailers to help revive ailing
town centres.
The Sports Direct owner told MPs
that the “internet is killing the high
street”.
His answer is taxing all retailers that
make more than 20% of their turnover
online - and not just online-only
operators.
Ashley said a tax would hit his own
£400m online operation, but give
retailers a reason to keep stores open.
“I want to make it crystal clear: the
mainstream high street as we thinkabout it today - not the Oxford Streets
and the Westfields - are already dead.
They can’t survive,” he told the Housing
and Local Government Committee.
“We have to realise the High Street
won’t make 2030 - it’s not going to be
there unless you do something really
radical and grab the bulls by the horns.
It won’t be there.”
All parties, including landlords and
the government bodies responsible for
setting business rates, had to play a
part in helping to save the High Street,
Ashley told the MPs.The Kendals store
in Manchester