House of Fraser store is saved – Binns in Darlington next?

A deal was struck by House of Fraser’s new owner Sports Direct to keep a previously threatened store in Telford, Shropshire open following negotiations with its landlord.

It is the second of 31 outlets earmarked for closure to be saved since Mike Ashley bought the department store chain out of administration for £90m.

Talks have been ongoing over the future of the Binns store on High Row – part of the House of Fraser group – for the past few weeks.

It employs 267 staff and crucially is said by insiders to be profitable, meaning it is more likely to be retained if a financial agreement can be struck with its landlord.

Mr Ashley, who owns Newcastle FC and is the founder and chief executive of Sports Direct, has pledged to save 47 of House of Fraser’s 59 outlets.

He has spoken about turning House of Fraser into the “Harrods of the high street” by bringing in more luxury brands and introducing a more personal shopping service.

The sportswear tycoon recently struck a deal to save House of Fraser’s flagship store in Oxford Street, London.

James Keany, head of national agency at international real estate company CBRE, said: “This is another example of what can be achieved when landlords work with us to ensure we deliver on the House of Fraser rescue plan.”

It has been reported that Mr Ashley will introduce his other brands, such as Flannels into House of Fraser stores.

Earlier this month, Chris McEwan, Darlington Borough Council’s deputy leader, maintained the situation was“very grim”, but said there was a fighting chance to retain Binns.

The store occupies a prominent position and the council is desperate to avoid the disappearance of another major retailer from the town centre.

Middlesbrough’s House of Fraser store could also close with less optimistic soundings having been made about its future.

A recent report by House of Fraser’s administrators showed the firm’s unsecured creditors were owed £484m.