>> It's been around since the 1800s, but on Wednesday, department store House of Fraser went into administration. It's the latest in a long line of big British brick and mortar chains that have gone bust or plan to close this year. With many it's the same story. Struggles with online competition, rising labor costs, subdued consumer spending, and ultimately, as Reuters' James Davey explains, failing to meet changing shopping habits.
>> It's got to be said that House of Fraser has been pretty poorly managed for the last decade. To be a successful retailer in any country, you need to offer something compelling, and House of Fraser just hasn't done that. It simply hasn't invested enough over the years.>> While many companies wait months to be bought, House of Fraser was snapped up on Friday by British sportswear retailer Sports Direct.
Sports Direct is owned by tycoon Mike Ashley who plans to buy more businesses and strategic stakes.>> I think there will be more takeovers. I mean, even in this deal, there's speculation that this House of Fraser deal could be a stepping stone to Sports Direct also taking on Debenhams.
The UK just has too many shops. And as more and more people will shop online, retailers don't need as many shops. So what we're gonna see is kind of showrooms where they showcase the product.>> Sports Direct gave no details of its plans for the business, or for the future of its near 17,000 staff.