House of Fraser’s plans to shut 31 stores approved by creditors

Creditors have backed the department store chain House of Fraser’s plans to close more than half of its stores.

The retailer will now go ahead with the approved CVA action to shut 31 of its 59 shops nationwide and impose huge rent cuts on ten others that it intends to keep.

High Street landlords have said they are unhappy with the plan as they will have to shoulder the burden of financial losses, but they were outvoted.

Up to 6,000 jobs will now be axed as a result of the House of Fraser store closures, while the retail chain has escaped administration for now.

House of Fraser is using a company voluntary arrangement, a form of insolvency proceedings, to overhaul its business. CVAs are being increasingly used by struggling retailers as a way to close stores.

About Robert Hutchins

Robert Hutchins is the editor of ToyNews and its sister title, Licensing.biz. He has worked his way from Staff Writer to Editor across the two titles, having spent almost eight years with both and what now seems like a lifetime surrounded by toys. You can contact him by emailing robert.hutchins@biz-media.co.uk or calling him on 0203 143 8780 You can even follow him on Twitter @RobGHutchins if ranting is your thing...

Check Also

Autumn Fair will be implementing Covid-19 status checks when doors open this September

Autumn Fair has introduced Covid-19 status checks for all attendees on arrival at the show …