House of Fraser has joined a growing list of once-proud retailers to apply a CVA and close stores as the collapse of the High Street as we know it continues.
The Top500 Elite retailer has applied to close 31 stores – with the potential loss of 6000 jobs – across the UK, including its flagship store in London. It is also planning to relocate its Baker Street head office and its office in Granite House in Glasgow.
The move comes after the announcement made on May 2, of C.banner’s conditional agreement to acquire a 51% stake in House of Fraser Group Ltd and intention to introduce significant new capital.
Currently, House of Fraser operates 59 leased stores across the UK and Ireland and its property portfolio is unsustainable in its current form.
The company says it has held constructive initial discussions with landlords and other key stakeholders. Pending approval of the CVAs, it is anticipated that those stores scheduled for closure will remain open until early in 2019.
If this process is approved it will affect up to 2,000 House of Fraser staff and a further 4,000 brand and concession partners. Those impacted by the proposed changes have already been informed. The directors are committed to working with all those affected openly and with sensitivity over the months ahead.
The consultation on the CVA proposal will take place over the next 17 days and House of Fraser will seek approval from its creditors on June 22 2018. During the period of the proposal, the Company will continue to trade as…