Sports Direct sacks House of Fraser directors and senior management

Sports Direct has sacked House of Fraser directors and senior management, weeks after rescuing the department store chain from administration.

The retailer, controlled by tycoon Mike Ashley, disclosed the move in a brief stock market statement.

Mr Ashley's company bought the struggling department store out of administration for £90m in August. He has said he wants to turn the 169-year-old chain into the "Harrods of the high street".

Further details of his strategy for House of Fraser have been slow to emerge.

The store chain has, together with rivals Debenhams (Frankfurt: D2T.F - news) and John Lewis, been struggling amid a tough retail environment.

Announcing the sackings, Sports Direct said: "Following the collapse of House of Fraser on August 10 2018, and subsequent calls for an investigation into the circumstances of that collapse, the company today announces that we have dismissed the former directors and senior management of House of Fraser."

Richard Lim, chief executive of consultancy Retail Economics, said the dismissal showed there was a "momentous challenge at hand".

He said: "Drastic action has been taken following a series of woeful management decisions, clumsy execution and an outdated perception of the UK market.

"The new management team will need to prioritise right-sizing initiatives and utilise any excess space to sweat assets more effectively in a move become fit-for-purpose in today's digital age."

The announcement comes at a time when the department store's new owners are in talks with landlords around the country over rents as it aims to keep them open.

Stores in Edinburgh, Hull and Swindon have been unable to be saved. Mr Ashley has criticised "greedy" landlords who refuse to agree new terms.