Guildford’s Largest High Street Store Bought by Sports Direct as Part of £90 Million Deal

Published on: 10 Aug, 2018
Updated on: 10 Aug, 2018

Within hours of the announcement that House of Fraser had moved into administration, Sports Direct has announced: “The group has acquired all of the UK stores of House of Fraser, the House of Fraser brand and all of the stock in the business.”

It has been reported that Mike Ashley, the owner of Sports Direct, has paid £90 million for the ailing chain. His name was previously given as a possible investor of the £70 million House of Fraser (HoF) were seeking to remain afloat, after a deal with a Chinese company, C banner, fell through.

Observers had considered that HoF was more likely to be snapped up at a low price once it had entered an insolvency process.

Ashley also owns a near-30% stake in Debenhams, so there will be a question whether Guildford’s two big department store will be merged as one of the cost-cutting measures that are likely to take place.

John Rigg, GVG

John Rigg, chairman of Guildford Vision Group (GVG) said: “This situation again calls into question the Local Plan objective to increase retail space in the town by 420,000 sq ft, ie 40%.

“GVG has consistently called for a proper masterplan for the town centre to help it achieve a sustainable future, with a proper people focus. We have to embrace the new retail reality.”

Howard Smith speaking on behalf of Guildford Labour said: “We fear that the rescue attempt or takeover currently being spoken of will leave it to wither, asset-stripped and under-invested. Let’s hope that is not the case.

Howard Smith

“We at Guildford Labour feel there are two conclusions to draw from this [news]. Firstly, it is making a nonsense of the obsession at Guildford Borough Council of trying to attract more large retail into Guildford town centre.

“Secondly, the government need to urgently do something to level the playing field that exists for competing online and bricks and mortar businesses.

“Ultimately, we would like to think that this moment will prove to be a tipping point and we can start to see some positive, constructive action both locally and nationally that will offer hope for our town centre, and that it will happen before we lose too many more of our stores.”

The HoF chain currently employs 17,500 across its chain of 59 stores an average of around 300 per branch.

The Guildford branch is the largest shop on Guildford High Street with nearly 200,000 square feet of retail space. Debenhams is of similar size.

Earlier the BBC reported that administrators Ernst & Young had confirmed that the business would continue trading, including all stores and offices.

All 59 shops are set to open as usual today (August 10, 2018), including 31 that have already been marked for closure such as Camberley and Epsom.

Yesterday, it was announced that the new owner of Homebase plans to close about a quarter of its stores next week, threatening more than 1,000 jobs across the UK. Guildford and Godalming both have Homebase stores.

It is intended to develop this article as further information and reaction is obtained. Please check back.

See also: Out of Court Settlement Reprieves House of Fraser in Guildford and More Concern for Guildford High Street Following News of House of Fraser Troubles

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