Less than two months after buying House of Fraser out of administration, Sports Direct has sacked the department store’s entire senior management team.
In a brief statement issued after the London stock market closed yesterday, Sports Direct said: “Following the collapse of House of Fraser on August 10 2018, and subsequent calls for an investigation into the circumstances of that collapse, the company today announces that we have dismissed the former directors and senior management of House of Fraser.”
Those departing the chain include Chief Executive Alex Williamson. The group has not said who will replace the departed management team or how many people are affected by the decision.
Commenting on the development, Richard Lim, Chief Executive at Retail Economics, said: “The dismissal of the entire senior management team at House of Fraser signals the momentous challenge at hand. Drastic action has been taken following a series of woeful management decisions, clumsy execution and an outdated perception of the UK market.
“The new management team will need to prioritise right-sizing initiatives and utilise any excess space to sweat assets more effectively in a move become fit-for-purpose in today’s digital age.
“The retailer operates in the part of the industry under the most significant amount of pressure and race is on to rapidly restructure the business to ensure the takeover is a success.”
Sports Direct has been negotiating with landlords around Britain to reduce rent bills at House of Fraser sites as part of its turnaround strategy for the struggling business.
