Denies Plans for Massive Store Shutdowns
- Sports Direct denies rumors of closing majority of House of Fraser stores
- New leases entered on most House of Fraser stores
- Rumors referred to old House of Fraser company, not Sports Direct Group
Sports Direct has refuted reports suggesting it plans to shut down the majority of its House of Fraser stores in the new year. The company clarified that it has actually entered into new leases on most of the House of Fraser stores, contrary to previous coverage indicating that it was not paying rent or planning to end leases on almost all of them. Sports Direct stated that the reports were based on ‘fresh papers from administrators EY’, which involved surrendering leases for ‘£nil’ and a few property leases remaining to be resolved. These leases pertained to the old House of Fraser company, not the Sports Direct Group or the new House of Fraser group. The company added that it is actively working on its investment program with the HoF brand and there will not be mass store closures in the upcoming year.
Factuality Level: 8
Factuality Justification: The article provides accurate information from Sports Direct’s statement denying the rumors about closing stores and clarifying the situation with leases. It also explains the context of the EY report and mentions their ongoing investment in House of Fraser brand.
Noise Level: 2
Noise Justification: The article provides a clear denial from Sports Direct regarding rumors about closing stores and clarifies the situation with leases. It also offers evidence to support its claims by mentioning that it has entered into new leases on the majority of House of Fraser stores.
Financial Relevance: Yes
Financial Markets Impacted: Sports Direct, House of Fraser
Financial Rating Justification: The article discusses Sports Direct’s denial of reports regarding potential store closures and its ongoing investment in the House of Fraser brand, which affects both companies’ financial situations and could impact their stock prices and operations.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article.
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