Sports Direct International plc., a renowned British sports-goods retailer has reportedly announced that it is purchasing the iconic Frasers building that is in Glasgow in a £95 million deal.
Reports cite, the company aims to purchase the building with the intention of creating the ‘Harrods of the North’. The announcement reportedly comes two months after Mike Ashley – the company owner – purchased the HoF (House of Fraser) out of administration. The tycoon reportedly aims to make a deal with the Glasgow City Council to obtain the freehold for the large site through the HoF brand.
According to a report by the BBC, the iconic department store – located on Buchanan Street – is currently owned by a pension fund that it administered by the Glasgow City Council and would be continuing on as Frasers. Sports Direct anticipates to complete the entire deal by 2020.
Reportedly, the announcement brings respite to the high street following a difficult year for retailers. The year reportedly has not only seen the collapse of HoF but also the downfall of retail giants like Maplin and Toys R Us.
Moreover, it was recently discovered that the fashion retailer – Coast had reportedly called in administrators. Meanwhile, café-chain Patisserie Valerie has also reportedly contributed to the sense of doom by announcing that it could possibly fold if it does not receive a significant cash injection as there is a black hole in the company’s accounts.
For the record, a plethora of other big-name firms have began looking for rescue deals as the chains struggle to find equilibrium amid a virulent mix of caution among shoppers and rising costs as the nation approaches Brexit.
Sports Direct reportedly stated that the flagship storefront has a robust luxury brand presence including Christian Louboutin, Gucci, Hermes and Prada. The purchase provides a remarkable base to build on the existing luxury offer to create the Harrods of the North.
According to reports, once the agreement reaches completion Sports Direct would be saving over 800 in-store jobs.