Sports Direct International has announced that the company is acquiring the Frasers department store in Glasgow for 95 million pounds from Glasgow City Council as administering authority for the Strathclyde Pension Fund, which also means around 800 in-store jobs will be saved. In a separate media release, House of Fraser vowed to create the 'Harrods of the North' - after announcing the acquisition deal.
Commenting on the development, Michael Murray, head of elevation for the new owners of House of Fraser, said in a statement: "We are overwhelmed and proud to own such an iconic destination. Acquiring the freehold enables us to elevate and invest in the store in order to partner with a broad range of luxury brands in future. This is fantastic news for all parties."
Frasers in Glasgow acquired for 95 million pounds
Sports Direct, which bought the House of Fraser out of administration recently, added that it intends to continue to operate the property as Frasers and will invest in the it to further elevate and enhance this iconic department store. Sports Direct further said that the consideration payable for the property will be funded from the group's cash resources and completion is expected to take place in January 2020.
The flagship store houses luxury brands such Hermes, Christian Louboutin, Prada and Gucci. “This acquisition provides a fantastic base to create and build on the existing luxury offer in order to create the Harrods of the North. It is great for Glasgow and Scotland, demonstrating House of Fraser's significant commitment to transforming the company. A home of luxury brands has been saved,” added House of Fraser to the statement.
“This is a fantastic deal for Glasgow and Scotland. It is an iconic store and much of the success of Buchanan Street over the last 20 years has been built around having Frasers as an important anchor tenant for the street. This fully cements House of Fraser's intent to create a luxury department store business,” said Kevin Sims of CBRE, who represented House of Fraser during the acquisition.
Picture credit:Frasers Glasgow via KBA PR