The stakes are rising , Mike Ashley is putting landlords under pressure. He wants and needs them to agree large rent concessions. if they wont he will blame them for many job losses and store closures. The previous owners of House of Fraser Chinese group, Sanpower had planned to close 31 House of Fraser stores.
But Mike Ashley has promised to close only a dozen. To do this he is pushing for no rent deals or massively reduced rents, perhaps House of Fraser pays a percentage of turnover and pays rates and service charge.
Landlords are resisting but are they greedy or at least unrealistic? The BPF has waded in , Melanie Leech says the negotiations are a two way process. "One party can't cry unfair when it doesn't get what it wants".
She adds, "many property owners are investing and managing property on behalf of pensioners' savings and depend on occupiers being able to pay rent".
Leech confirms rightly that landlords are pragmatic and certainly wont be leaving stores empty for the sake of it, that would be in no ones interests.
Sports Direct blames 'greedy landlords' for any House of Fraser job cuts Time is running out for a deal to be struck as store closures loom, says sportswear firm