House of Fraser's flagship Oxford Street store saved from closure

Lucia Binding
House of Fraser on Oxford Street has been spared closure: Getty Images

House of Fraser’s Oxford Street store has been spared closure after fresh terms were agreed with its landlord.

The flagship store was one of 31 earmarked to close, putting 6,000 jobs at risk, prior to the business going into administration earlier this month.

Sports Direct tycoon Mike Ashley agreed a £90 million cash buyout of the company within hours of it falling into administration.

His plan is to keep 80 per cent of House of Fraser's 59 UK branches open. A spokesman said assessments would be made on “a store by store basis”.

James Keany of CBRE, the real estate services and investment firm advising Sports Direct regarding House of Fraser properties, said: “This deal only happened because all parties realised it was better to keep the store open and fully operational.

“It was a real case of landlord and tenant genuinely working together and at great speed.”

The Oxford Street branch is the chain's flagship store (Getty Images)

It is the first deal to be agreed on a House of Fraser store since Sports Direct took over.

The closures were set to take place under a Company Voluntary Arrangement CVA but the plan fell wayside once the 169-year-old department store chain fell into administration.

Michael Murray, Head of Elevation, commented: “We said we would keep as many stores open as possible, and in less than a week we have saved the biggest store.

“Oxford Street was meant to close in January and now it’s safe which is great news is for all parties”.

Mr Ashley has said he intends to turn the company into the “Harrods of the high street”.

It was revealed on Monday that more than 600 jobs were under threat at two House of Fraser warehouses which supply deliveries to stores and customers.

Around 627 staff at the warehouses were told that they were at risk of redundancy, the GMB union said.