The BBC have reported on House of Fraser Rescue plans, stating that Sports Direct’s Mike Ashley has been in talks with landlords regarding potential rent reductions after saying he would attempt to keep 80% of stores open.
The report claims that some landlords are being offered rents equivalent to 5% of a store’s turnover, including a service charge, while "a handful" of stores are being offered the same level of rent that was being paid prior to the company's administration.
Meanwhile, a small number of landlords are being asked to accept deals where they will pay no rent whatsoever but will receive the service charge and have their business rates bills covered. These no rent deals will last for two years and be subject to a three month break clause after a year.
