CVA deal to result in six major store closures
Creditors have backed department store chain House of Fraser’s plans that will see more than half of its stores closed with the loss of up to 6,000 jobs.
The troubled retailer will now go ahead and shut 31 of its 59 shops nationwide and impose big rent cuts on 10 others that it intends to keep through a company voluntary arrangement (CVA), a form of insolvency proceedings.
The West Midlands stores earmarked for closure are Birmingham, Leamington Spa, Shrewsbury, Telford, Wolverhampton and Worcester.
All stores identified for closure are anticipated to trade until early 2019.
House of Fraser said it is “absolutely committed” to supporting staff affected by the closures.
Frank Slevin, chairman of House of Fraser, said: “The approval of the CVAs is a seminal moment in House of Fraser’s history. We must now continue with the implementation of our restructuring plan. This is also an important milestone in the transaction with C.banner and moves us toward the completion of the capital injection first announced in May.”
Its chief executive Alex Williamson added: “The CVA proposals have been approved by our creditors and we are grateful for their ongoing support and belief in the future of House of Fraser. This was clearly a difficult decision to take but is, ultimately, the only one to secure our future.”
