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House of Fraser attacks greedy landlords

richfool
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House of Fraser attacks greedy landlords

#162617

Postby richfool » August 28th, 2018, 2:12 pm

Might this be a sign that REIT's and property companies may have to accept reduced rents in order to help high street retail survive?

House of Fraser has criticised "greedy landlords" that are resisting new owner Mike Ashley's attempts to cut rents on the store chain's 59 outlets.

"Some landlords are being very collaborative in order to give us a chance at turning the business around, giving House of Fraser a lifeline and saving hundreds of jobs," a spokesman said.

"However, some greedy landlords would rather see the stores close than help save the jobs of hundreds of people.

https://www.bbc.co.uk/news/business-45328727

GoSeigen
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Re: House of Fraser attacks greedy landlords

#162663

Postby GoSeigen » August 28th, 2018, 4:51 pm

richfool wrote:Might this be a sign that REIT's and property companies may have to accept reduced rents in order to help high street retail survive?

House of Fraser has criticised "greedy landlords" that are resisting new owner Mike Ashley's attempts to cut rents on the store chain's 59 outlets.

"Some landlords are being very collaborative in order to give us a chance at turning the business around, giving House of Fraser a lifeline and saving hundreds of jobs," a spokesman said.

"However, some greedy landlords would rather see the stores close than help save the jobs of hundreds of people.

https://www.bbc.co.uk/news/business-45328727


It might be a sign that the battle against inflation has been won....


GS

gryffron
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Re: House of Fraser attacks greedy landlords

#162686

Postby gryffron » August 28th, 2018, 7:03 pm

Why on earth should any company "help out" another? Mike Ashley is not exactly a famous philanthropist is he? Indeed, he is more famous for screwing every supplier, and most especially his own staff, for every penny he can possibly get.

If the landlords think he'll pay, or that they can get another tenant who will, then good luck to them in telling Mike Ashley to sling his hook.

Gryff

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Re: House of Fraser attacks greedy landlords

#162869

Postby gbjbaanb » August 29th, 2018, 1:46 pm

gryffron wrote:Why on earth should any company "help out" another?


Partly self-interest, if you charge your customer 10% rents and they are going bust, you might want to reduce it. 7% rental return is better than 0% once your customer has gone bust.

But WRT Mike Ashley, I can see him screwing the landlords just as much as possible too. And I can see many stores closing, so that puts him in a position to tell the landlords reduce the rent or it'll be your store closed. Same position as above, but not through altruism this time. So why on earth should Mike Ashley "help out" his landlords?

Wider issue here is that the high street is structurally unsound, the move to warehouse, online and out-of-town shopping (combined with high rents and rates) will kill it sooner or later. If I owned high street retail, I'd be looking to convert it to housing or entertainment.

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Re: House of Fraser attacks greedy landlords

#162917

Postby supremetwo » August 29th, 2018, 4:15 pm

gbjbaanb wrote:Wider issue here is that the high street is structurally unsound, the move to warehouse, online and out-of-town shopping (combined with high rents and rates) will kill it sooner or later. If I owned high street retail, I'd be looking to convert it to housing or entertainment.

Plus the parking costs and their gestapo-like policing with ever-increasing 'fines' and penalties.

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Re: House of Fraser attacks greedy landlords

#163505

Postby Charlottesquare » September 1st, 2018, 10:11 am

gbjbaanb wrote:
gryffron wrote:Why on earth should any company "help out" another?


Partly self-interest, if you charge your customer 10% rents and they are going bust, you might want to reduce it. 7% rental return is better than 0% once your customer has gone bust.

But WRT Mike Ashley, I can see him screwing the landlords just as much as possible too. And I can see many stores closing, so that puts him in a position to tell the landlords reduce the rent or it'll be your store closed. Same position as above, but not through altruism this time. So why on earth should Mike Ashley "help out" his landlords?

Wider issue here is that the high street is structurally unsound, the move to warehouse, online and out-of-town shopping (combined with high rents and rates) will kill it sooner or later. If I owned high street retail, I'd be looking to convert it to housing or entertainment.


It is a distinct possibility that housing in some positions will be a viable alternative or as you say entertainment or maybe hotel use.

No idea what the owners of the West End Edinburgh store have in mind for the iconic "Binns" building (under the clock having fond memories as a regular place to meet up with dates back in the 1970s), but they appear to have given H of F notice to quit per this article.

https://www.edinburghnews.scotsman.com/ ... -1-4780927

If the numbers stack up it would make a great flats /serviced apartment location with some stunning views, as of course would the Jenners building to which the staff appear to be moving.

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Re: House of Fraser attacks greedy landlords

#218265

Postby westmoreland » April 29th, 2019, 8:16 pm

would HoF hand back the keys on any leases that were rented well below market rates? :lol:

after all, no-one forces anyone to sign a lease. in debenhams case, they are locked in to long leases because they were paid significant sums by landlords.

problem with department stores of course is that the huge footprints they are vacating cannot easily be absorbed by the market. there is just too much retail space out there. less well known is that per square foot, department stores pay the lowest rents. if landlords can successfully re let most of the space separately, either floor by floor or whatever, they can achieve significantly higher overall rents. far easier said than done of course.


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