Intu Faces Retaliation from Sports Direct Owner over Unresolved Rent Issues
- Mike Ashley plans to close 17 stores in Intu shopping centres due to rent row
- Stores include Sports Direct, House of Fraser, Flannels, USC and Evans Cycles outlets
- Closure programme estimated to cost over £25m a year in lost rent and service charges
- Ashley accuses Intu of being unwilling to help retailers save stores and jobs
Sports Direct owner Mike Ashley has vowed to close all his stores located in Intu shopping centres following a rent row over four House of Fraser stores. The move will see Ashley shut 17 stores – a mix of Sports Direct, House of Fraser, Flannels, USC and Evans Cycles outlets – when leases reach a break clause or expire. The retaliation comes after the pair failed to agree “reasonable terms” to keep the House of Fraser stores in Nottingham, Norwich, Lakeside in Essex and the Metrocentre in Gateshead open. According to The Sunday Times Ashley estimates that the closure programme will cost more than £25m a year in lost rent and service charges. Ashley told the paper: “Intu has demonstrated it is unwilling to help retailers save stores and jobs. It is unrealistic for Intu to continue to enjoy a long term relationship with our retail businesses.” Ashley currently owns Sports Direct, House of Fraser, Flannels department store and Evans Cycles, and holds stakes in Debenhams, French Connection and Game Digital. Intu is currently dealing with a takeover bid from a consortium led by deputy chairman John Whittaker in £2.9bn deal. The consortium is made up of Whittaker’s Peel Group, the Saudi Arabian Olayan Group and the Canadian investor Brookfield Property Group have until the 30 November to agree on a deal following a third extension announced last week.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Mike Ashley’s decision to close stores due to a rent dispute with Intu shopping centres and mentions the financial impact of this decision. It also includes relevant background information about Ashley’s other businesses and the ongoing takeover bid for Intu.
Noise Level: 4
Noise Justification: The article provides relevant information about Mike Ashley’s decision to close stores due to a rent dispute with Intu shopping centres and mentions the potential impact on various retail businesses. However, it could benefit from more in-depth analysis of the broader implications of this conflict and the state of the retail industry.
Financial Relevance: Yes
Financial Markets Impacted: Intu shopping centres, Sports Direct, House of Fraser, Flannels, USC and Evans Cycles
Financial Rating Justification: The article discusses the financial impact on various retail companies and shopping centers due to a rent dispute between Mike Ashley and Intu shopping centres, which may affect their operations and profitability.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The situation described involves a business dispute between two companies over rent and store closures, which has a minor impact on the involved parties.
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