6,000 jobs at risk as major retailer reveals closure plans

House of Fraser has revealed it wants to shut 31 stores across the country as it details its proposals for a company voluntary arrangements (CVA).

If this process is approved it will affect up to 2,000 House of Fraser colleagues and a further 4,000 brand and concession partners.

The West Midlands stores earmarked for closure are Birmingham, Leamington Spa, Shrewsbury, Telford, Wolverhampton and Worcester. Beatties in Solihull is unaffected because it is a separate legal entity.

The retailer said it was “central to the significant restructuring of the business, without which House of Fraser does not have a viable future”.

The proposing of the CVAs follows 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 said its property portfolio “is unsustainable in its current form”.

It wants to close 31 stores, leaving the group with 28 stores. As part of this CVA process, the company also proposes to relocate the Baker Street head office and the Granite House office in Glasgow to new locations.

Frank Slevin, chairman of House of Fraser said: “The retail industry is undergoing fundamental change and House of Fraser urgently needs to adapt to this fast-changing landscape in order to give it a future and allow it to thrive.

“Our legacy store estate has created an unsustainable cost base, which without restructuring, presents an existential threat to the business. So whilst closing stores is a very difficult decision, especially given the length of relationship House of Fraser has with all its locations, there should be no doubt that it is absolutely necessary if we are to continue to trade and be competitive.”