House of Fraser pulls plug on Chester Northgate plans

House of Fraser has pulled out of plans to anchor the Chester Northgate scheme, news which follows yesterday’s announcement that it wants to shut 31 stores across the country as part of a company voluntary arrangement (CVA).

House of Fraser has filed the CVA plans that propose the closure of 31 of its 59 stores, putting 6,000 jobs at risk.

Samantha Dixon, leader of Cheshire West and Chester Council, said: “It is obviously disappointing that House of Fraser’s financial problems have led to one of our tenants to change their decision to be part of the Chester Northgate scheme.

“Whilst we remain committed to regenerating the Northgate area of the city and to delivering a high quality scheme, clearly we will reflect on the impact of this announcement. We will continue to keep the mix and phasing of the scheme under review and continue to engage with interested parties as we have done all along.”

She added that the council’s planning permission provided the flexibility for it to make changes in reaction to the market in line with its “prudent approach to development”.

“The retail element of the scheme is scheduled to be delivered in the second phase of the development and so House of Fraser’s decision at this point does not fundamentally undermine our ambition to see the comprehensive redevelopment of this vital part of the city,” she said.

The Chester Northgate project proposes to redevelop the northwest quarter of Chester City Centre with a leisure, residential and shopping development.