Down and at Fraser's house | Business



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EVerlast sports socks at "mega-economic" prices jostle to make way for dozens of Lonsdale track socks and Karrimor raincoats. No, it's not a branch of Sports Direct, but House of Fraser in Richmond, one of London's richest suburbs.

Just over six months after Mike Ashley's retail group bought the high-end retail chain out of administration for £ 90m, his apparent ambition to turn it into 'Harrods of the High Street "is hard to detect.

While Ashley fights for control of Debenhams, he tries to convince the troubled retailer's board of directors and its shareholders that he is the only man with "blue-ribbon leadership" skills to reverse the situation. . But looking around his department store empire might raise questions about these ambitions.

In December, Sports Direct revealed that House of Fraser was losing nearly £ 3m a week and that some key suppliers, including the Jigsaw and Edinburgh Woolen Mill brands, Jacques Vert, Jane Norman and Jaeger were withdrawn.

The Guardian visited four House of Fraser stores this month in Richmond, Wolverhampton, Birmingham and Sutton Coldfield, and discovered a deplorable situation. Signs of decline include three fully-enclosed floors in Birmingham, where restaurant and barber concessions have also been closed.

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In some stores, almost 50% of the clothing stock appeared to be Sports Direct, Firetrap and SoulCal owned by No Fear, USA Pro, and more well-known brands such as Lonsdale and Karrimor.

In Wolverhampton, the cafe had just closed and the old bed grant was still empty, except that only one customer was sitting on a couch, next to a few shelves of Christmas decorations. At Sutton Coldfield, a section dedicated to the clothing brand of Fraser Issa's House, once worn by the Duchess of Cambridge to announce her engagement, had been closed.

Far from attracting new designer brands in recent months, key brands have deserted the department store including Chanel cosmetics, Clarins beauty salons, Max Mara's Weekend, LK Bennett and the Fragrance Shop, present in 27 stores. Others, including fashion brands Mint Velvet, Olsen and Marella, have significantly reduced their presence.





House of Fraser store on Corporation Street, Birmingham.



Discounted suitcases at the House of Fraser store on Corporation Street, Birmingham. Photo: Fabio De Paola / The Guardian

Stacks of Karrimor outerwear, low-cost suitcases and bare ties on Sports Direct's hoodies and sports tracksuits filled the big spaces where House and House brands Howick and Linea once stood. Fraser, Abandoned Clothes, and Bed and Sofa Concessions And So To Bed and ScS.

"It's not really the Harrods on the high street, but the Richmond Sports Direct," said Nick Bubb, an independent retail badyst, following a visit to his local store. with the Guardian, in South West London.

On the ground floor, trainers' tables filled a space where the optician chain David Clulow has already traded. An outdoor clothing section bearing Sports Direct's own brand, Karrimor, had been crammed into a space next to the kitchen utensils on the top floor, where the holes in the ceiling were covered with plastic.





Broken door at House of Fraser store, Victoria Street, Wolverhampton.



Broken door at House of Fraser store, Victoria Street, Wolverhampton. Photo: Fabio De Paola / The Guardian

"He's just trying desperately to fill the gaps with his own stock and sell it. It's not a recipe for long-term success, "Bubb said. "Where is the depth of management talent to handle all this? I think he will regret having never bought House of Fraser. The mystery is why he also wants to buy Debenhams. "

Of course, damaged flooring, lighting and doors in several stores are not unique to House of Fraser, which suffers from many years of under-investment. One supplier said the brands were already present before the arrival of Ashley so they could sell directly online, backed by a relatively small number of their own stores or concessions.

Once the unwanted actions sold, Ashley promised the vendors to bring the same type of high-end brands, such as Gucci and Burberry, which are stored in the Flannels hit channel.

It is thought that in some stores, Ashley plans flannel floors as part of widespread changes. Sports Direct declined to comment on its plans for House of Fraser, but the company has already updated its computers and computer systems using Sports Direct systems and has reduced costs by transferring its warehousing and distribution to its main site. in Shirebrook, Derbyshire, and combining its headquarters. with the headquarters of Flannels in London.





Discount clothing racks at the Wolverhampton House of Fraser.



Discount clothing racks at the Wolverhampton House of Fraser. Photo: Fabio De Paola / The Guardian

Industry discussions suggest that Ashley wants only 40 members of the House of Fraser. 59 stores and is still weighing which ones. To date, it has acquired the iconic Frasers building in Glasgow for £ 95 million, closed five stores and signed agreements covering at least 37 others, although most of them are only for one store. year.

"From his point of view, he cleans the garbage," said one insider. "But until Harrods off the high street, there is not much sign of that yet."

Ashley admitted that it could take almost two years.

But a supplier said high-end brands such as Paul Smith's Tommy Hilfiger, Hugo Boss, and PS, who are still in the store and want to continue marketing their sister company Flannels, will help House of Fraser keep the lead out of trouble. l & # 39; water.

"For obvious reasons of brand integrity, people are thinking of [pulling out]. But John Lewis has only 23 stores and is focusing more and more on private labels. The problem is that it's the only show in town. If you leave House of Fraser, where are you going? "Said the supplier. "He's a player and the question is if you want to play with him."

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