Jack Wills’ new owner, Sports Direct, is asking landlords to accept rent-free tenancy agreements across some of its worst-performing stores, Drapers can reveal.
The retailer is understood to be seeking to slash a handful of rents to zero, and is offering landlords 5% of turnover at the majority of its stores.
Drapers understands that Sports Direct is willing to pay full rent on only eight of Jack Wills’ 100 stores.
Last week it was reported that Sports Direct is hoping to reduce rents in poorly performing stores, and Jack Wills shops could be closed if new deals cannot be struck.
CBRE is advising Sports Direct on the Jack Wills property portfolio. Michael Murray, Sports Direct’s head of elevation, has said Jack Wills has “over-extended itself” in its physical retail offer.
Sports Direct bought Jack Wills for £12.8m in a pre-pack administration deal last week. All 100 Jack Wills stores in the UK and Ireland, as well as the distribution centre, have been transferred to Sports Direct, along with all 1,700 employees.
Jack Wills appointed KPMG to carry out a review of the business and explore future opportunities last month.
Sports Direct and CBRE declined to comment.