House of Fraser has struck a deal with landlords to pay rent on a monthly rather than quarterly basis.
House of Fraser will pay monthly rent on around 15 of its 63 stores, including Lakeside in Thurrock and Sheffield’s Meadowhall shopping centre. Houes of Fraser is negotiating with landlords for a further 15 stores to have a similar deal.
It is understood that landlords including Hammerson, Capital Shopping Centres and British Land are among those who have agreed to the deal with House of Fraser.
House of Fraser is also planning to agree to give some of its concessionaires similar monthly terms. Mosaic, All Saints and Ted Baker are expected to benefit.
House of Fraser, which is part owned by troubled Icelandic investment company Baugur, has also secured £5 million from landlords to refurbish some stores.
Other retailers, led by Arcadia owner Sir Philip Green, have been pushing landlords to agree to monthly rent payments to help with cashflow for retailers as the economic downturn hits. However, House of Fraser is understood to have negotiated its arrangements separately.
Landlords have already agreed to allow smaller businesses to pay rents monthly, if they have three or fewer shops and an annual rent of less than £50,000.