House of Fraser calls in advisers on restructuring plan

Turnaround specialists KPMG have been called in by department store chain House of Fraser to advise on a restructuring plan that could result in job loses and store closures, it has been announced.

The accountancy giant will look at how to cut costs to offset the poor high street footfall that has affected House of Fraser, which has 59 stores, 6,000 staff and 11,500 concession staff. It has a major site in Birmingham city centre.

It will consider options including a Company Voluntary Arrangement (CVA) for the retailer, which could result in store closures. However, House of Fraser says no decision has yet been made.

After a worse-than-expected performance over Christmas, following weak results for the first three quarters of 2017, House of Fraser asked landlords to cut rents.

The company was acquired by Sanpower in 2014 for £450m.

A House of Fraser spokeswoman said: “We are working with KPMG to look at options that best support our transformation programme.”