House of Fraser store closures set to be announced this week - MSE News

Former_MSE_Callum · 28 August 2018 at 12:34PM

House of Fraser is set to announce a spate of store closures this week – as its website remains down more than two weeks after it was bought...

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'House of Fraser store closures set to be announced this week'

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VT82 · 28 August 2018 at 1:08PM

I take it no one who posted their gift cards in has heard a dicky-bird back yet? I'm still holding out sending mine in; I know they're not doing any good gathering dust in my wallet, but I would still like to hear an update before I send them off.

jenniewb · 28 August 2018 at 2:18PM

VT82 wrote: »

I take it no one who posted their gift cards in has heard a dicky-bird back yet? I'm still holding out sending mine in; I know they're not doing any good gathering dust in my wallet, but I would still like to hear an update before I send them off.

Sent mine last week, it was below £50 and I was fairly sure they'd not honour it anyway so avoided the suggested £4.20 odd fee the post office man recommended and took evidence of posting instead.

Not heard anything, doubt I will.

My mum works for a small family run company which has been going for a few decades, it's about to go under because Mike Ashley waited for the company to go into administration, he knew what he was doing, he has no aims to pay anyone back, struggling companies who allowed credit to run up because they had wrongly allowed a gentleman's agreement on this.
My mum and her husband have given that company many years of their life including 24 hour days and unpaid work multiple times over, because they are grafters and because they believed in the company. That Mike Ashely can destroy companies like this- as has already been reported and push those so close to retirement age towards unemployment even ignoring the stress and sleepless nights, on a fast track needing another career (but too far to retire without personal debts risking home loss) just leaves me beyond words.

The government needs to make rules on this one, it keeps happening too often and the fat cat walks away scot free and expecting to benefit every time.

Vegastare · 28 August 2018 at 5:08PM

It saddens me at the loss of House of Fraser and the stores in it's chain like Kendals in Manchester....as for Mike Ashley well his stepping in on the brink was certainly what one can expect from him.....I can't help but think that the landlords may have worked with other investors.........still it is sad for so many staff and there families, the suppliers and the towns that will see closures.....we know trading styles are changing but maybe the councils need to step in with lower business taxes while these stores try and re structure.
Soon we will have High Street full of coffee shops - four have opened in the last 12 mths alone in the small town I live in.
But at least they are bringing something to the hald empty high streets

photome · 28 August 2018 at 5:15PM

jenniewb wrote: »

Sent mine last week, it was below £50 and I was fairly sure they'd not honour it anyway so avoided the suggested £4.20 odd fee the post office man recommended and took evidence of posting instead.

Not heard anything, doubt I will.

My mum works for a small family run company which has been going for a few decades, it's about to go under because Mike Ashley waited for the company to go into administration, he knew what he was doing, he has no aims to pay anyone back, struggling companies who allowed credit to run up because they had wrongly allowed a gentleman's agreement on this.
My mum and her husband have given that company many years of their life including 24 hour days and unpaid work multiple times over, because they are grafters and because they believed in the company. That Mike Ashely can destroy companies like this- as has already been reported and push those so close to retirement age towards unemployment even ignoring the stress and sleepless nights, on a fast track needing another career (but too far to retire without personal debts risking home loss) just leaves me beyond words.

The government needs to make rules on this one, it keeps happening too often and the fat cat walks away scot free and expecting to benefit every time.

That’s sad but hardly Mike Ashley’s fault, what would have happened if he hadn’t bought H of F

jenniewb · 29 August 2018 at 6:09AM

photome wrote: »

That’s sad but hardly Mike Ashley’s fault, what would have happened if he hadn’t bought H of F

If he had not waited and deliberately waited for the company to go into administration, he would have had to pay the bills of the many companies HoF owed money to, if not in full then to some agreement perhaps enough that they didn't go under. Then there are any staff debts- I don't know what staff are owed if they are (eg saved holiday pay, company pensions and so on). The only reason he waited was so he didn't have to pay these.

But it gets worse- because it was not bought by Mike Ashley- it was bought by Sports Direct (owned by Mike Ashley). The reason he did this rather than put it in his own name? Because if there are any law suits heading his way, any suing would come from Sports Direct rather than Mike Ashley's own pockets.

Rest assured, he may well have kept the store open, but it was done entirely to earn him profit and not as a good will gesture. That people will struggle and suffer as a result will be of no concern to him, from all reports and indeed the way he is acting regarding this would indicate that he has no morals.

NBLondon · 29 August 2018 at 8:50AM

jenniewb wrote: »

The only reason he waited was so he didn't have to pay these.

This is called business

Because if there are any law suits heading his way, any suing would come from Sports Direct rather than Mike Ashley's own pockets.

This is called business

Rest assured, he may well have kept the store open, but it was done entirely to earn him profit and not as a good will gesture.

This is called business.

Or are you alleging that Mike Ashley secretly manipulated customers and suppliers to push a company into administration so he could buy it at the right time? It's rough that a small family business can go under because of cashflow and people who have given a lot to it lose out. But that's capitalism... Ruthlessness works and it's self-reinforcing.

SuiDreams · 29 August 2018 at 12:53PM

We had 2 HoF near me that were previously announced to close, this would have led to the demise of both town centres, since the buy out it has been announced that these stores will no longer close, so jobs and high streets saved.

jenniewb · 31 August 2018 at 4:38AM

NBLondon wrote: »

This is called business
This is called business
This is called business.

Or are you alleging that Mike Ashley secretly manipulated customers and suppliers to push a company into administration so he could buy it at the right time? It's rough that a small family business can go under because of cashflow and people who have given a lot to it lose out. But that's capitalism... Ruthlessness works and it's self-reinforcing.

I'm not proposing he did anything secretly; he would have known if he waited long enough the company would go into administration and only then would he stake his claim in order to shirk off the debts -then to buy the company not in his name but that of one of his companies would mean no one could sue him or anything similar because it wasn't he who bought the company on paper it was Sports Direct. He knew what he was doing, he made no secret of it, it's all published for anyone to read about.

It's not illegal and you may well describe it as "business" but it is morally corrupt and just plain wrong on many other levels. The whole thing could have been handled in a far less damaging way and perhaps fairer way when you consider many of the firms who House of Fraser owed money to were for products and services House of Fraser either didn't pay for or retained. Anyone else would call that theft, not apparently if it's "business".

Ashley deliberately waited for the brand to go into administration with the added agreement that he would not owe a penny to those who had provided their side of the contracts they had signed. He knew what he was doing, he didn't have to wait. But that wouldn't have gotten him quite as much money as the current way he's done things, would it, and then it maybe wouldn't fit your criteria for "business".

NBLondon · 31 August 2018 at 9:20AM

jenniewb wrote: »

It's not illegal and you may well describe it as "business" but it is morally corrupt and just plain wrong on many other levels.

Only by your standards... you freely admit that Ashley was open about his plans so you can't even call him hypocritical.

The whole thing could have been handled in a far less damaging way and perhaps fairer way when you consider many of the firms who House of Fraser owed money to were for products and services House of Fraser either didn't pay for or retained. Anyone else would call that theft, not apparently if it's "business".

If HoF did it deliberately, with the intention of depriving those firms, then it's theft (or possibly fraud). If the previous owners of HoF did it knowingly, then re-purchased the remnants of the company under a different identity - that would probably be fraud too.

Why is it morally wrong for Ashley/SD to make a business decision that benefits themselves (and their investors and shareholders)? Why would any organisation take on another's debts that they had no hand in creating? The only reason for that is if they believe their superior management skills can overcome the situation that led to the debts in the first place and make a profit - or they believe they can asset-strip and make a profit that way.

and then it maybe wouldn't fit your criteria for "business".

Have you not heard of this thing called capitalism, jennie?

photome · 31 August 2018 at 3:43PM

jenniewb wrote: »

I'm not proposing he did anything secretly; he would have known if he waited long enough the company would go into administration and only then would he stake his claim in order to shirk off the debts -then to buy the company not in his name but that of one of his companies would mean no one could sue him or anything similar because it wasn't he who bought the company on paper it was Sports Direct. He knew what he was doing, he made no secret of it, it's all published for anyone to read about.

It's not illegal and you may well describe it as "business" but it is morally corrupt and just plain wrong on many other levels. The whole thing could have been handled in a far less damaging way and perhaps fairer way when you consider many of the firms who House of Fraser owed money to were for products and services House of Fraser either didn't pay for or retained. Anyone else would call that theft, not apparently if it's "business".

Ashley deliberately waited for the brand to go into administration with the added agreement that he would not owe a penny to those who had provided their side of the contracts they had signed. He knew what he was doing, he didn't have to wait. But that wouldn't have gotten him quite as much money as the current way he's done things, would it, and then it maybe wouldn't fit your criteria for "business".

Why would he do it any differently? why would anyone buy something today if you know its going to be cheaper tomorrow

Your anger should be directed at the former owners of H of F

House of Fraser store closures set to be announced this week - MSE News

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