One voice that was more optimistic was the founder of upmarket menswear label Private White VC. James Eden said: “We are pleased someone is willing to resurrect House of Fraser. No one knows retail better than Mike Ashley.”
The retail tycoon also promised to keep open the bulk of the House of Fraser stores, reversing the previous rescue plan which earmarked 31 of its 59 shops for closure.
Ian Gilmartin, head of retail and wholesale at Barclays, said: “Sports Direct doesn’t have to keep all the stores as House of Fraser. They can use the real estate in a different manner to utilise all their stable of brands, such as [designer chain] Flannels, in the broader Ashley empire.”
Ashley could draw on his experience with Flannels, also owned by Sports Direct, to go upmarket, retail analysts added.
But even then, “it is still questionable whether premium stores are needed nationwide”, said Global Data’s Sofie Willmott. “Consumers nationwide are unlikely to spend as willingly as both foreign and domestic tourists visiting the capital.”
A senior director at of one the Britain’s largest luxury goods online retailers said: “I doubt anyone’s ability to establish an additional physical wholesale presence in the high end luxury fashion space.”
