Department store chain Fenwick has walked away after talks to take on the former House of Fraser store in Guildford, Surrey fell through.
Retail Week understands that Fenwick has been unable to agree on a deal with landlord Canada Life for the 186,000 sq ft site. A source close to the discussions said that Fenwick had been “very interested” in the site, but had been unable to reach an agreement.
The previous tenant House of Fraser closed its Guildford branch on September 30, alongside its store in Solihull, which shut on August 28.
Canada Life bought the building from BL Fraser, a joint venture between landlord British Land and House of Fraser, in 2009 for £31.5m. The property was then let to House of Fraser on a lease expiring in 2039.
Fenwick has declined to comment and Canada Life has not responded to Retail Week’s request for comment.
The retailer currently has nine stores across the UK but is due to close its iconic New Bond Street store early next year, after more than 130 years of trading.
The family-owned department store sold the property to investment firm Lazari for £430m last December, as it battled with “challenging trading conditions”.
At the time, the retailer said the sale of the New Bond Street store would enable it to make future investments in stores around the UK.
Fenwick’s other stores are in: Newcastle, York, Bracknell, Canterbury, Colchester, Kingston, Tunbridge Wells and North London’s Brent Cross shopping centre.
In October, Retail Week revealed that the sale had enabled Fenwick to report pre-tax profits of £57.1m last year, compared to a £5.2m loss in the previous year.
Fenwick chief executive John Edgar told Retail Week: “Last year was one of the most important in the history of Fenwick. [The Bond Street disposal] has allowed us to continue our transformation on an even more sound footing.
“It has allowed us to step up investment in all our stores, particularly Newcastle, and invest in digital, which is the growth driver.”
He added that there were no plans to dispose of any more stores. “I’d actually like to add one or two in the right places,” he said.
Related Companies
- Previous
- Next
No comments yet