House of Fraser Manchester store now safe after council steps in

By

Sandra Halliday

Published
Dec 3, 2018

News a few weeks ago that Manchester’s historic Kendals department store would be closed after owner House of Fraser had failed to convince its landlord to agree a more favourable rental deal was greeted with dismay by the city’s consumers. And the outcry over the planned closure has led to a reversal of the decision.

The store, which is located in the Deansgate shopping area, is to stay open after a new deal has been struck. Importantly, that will save hundreds of jobs.

The about-face came after the local council got involved in the talks that were aimed at reducing the rent from the previous £4.36 million 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.”

The fondness of local consumers for the store is understandable given that it's almost 200 years old, having opened in its current location as far back as the 1830s. The closure had been planned for January 28, but House of Fraser has now confirmed that this will definitely not happen.

Mike Ashley, who controls Sports Direct, which bought House of Fraser for £90 million in August, said: “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.” He gave no details of the deal, however.

In earlier good news for the area, back in September it had been confirmed that the nearby Altrincham branch of House of Fraser had been saved from closure.

But the House of Fraser branch closure story continues to rumble on with the company's original aim to keep around 80% of the stores open (rather than closing more than half as the company had planned before it went into administration) still not guaranteed. Talks with a number of landlords have proved problematic and many stores are still in a state of limbo.