House of Fraser has placed several roles into consultation as it prepares to close its head office on London’s Baker Street, Drapers understands.
It is not yet known how many roles are affected.
Drapers understands the remaining HoF head office staff will be moved to the London office of parent company Sports Direct, located above the Flannels store on Oxford Street, where the Flannels, USC and Cruise head office teams are based.
One source said the redundancies would be made in HoF’s central and support teams, but not in buying and merchandising.
Another source said: “Some redundancies are happening. They are closing the HoF office and moving everyone to Oxford Street. They have scaled down the head office massively anyway, so there aren’t that many people left.
”[Sports Direct owner and CEO] Mike Ashley is rationalising the entire business. He is downsizing operations and lining up the future of HoF.”
One industry insider described the Baker Street closure as part of the “ongoing consolidation” of HoF, which started after Sports Direct acquired it out of administration in August. In October, Ashley sacked HoF’s entire senior management team.
Separately this week, Ashley has reportedly decided to close all 15 of his stores that are located in Intu-owned shopping centres – including Sports Direct, Flannels, Evans Cycles and USC – as his dispute with the landlord continues.
It comes after he and Intu failed to agree a deal to keep the House of Fraser stores in Nottingham, Norwich, Lakeside in Essex and the Metrocentre in Gateshead open, as exclusively reported by Drapers earlier this month.
Drapers has contacted Sports Direct for comment on the head office plans.