The two banks will loan House of Fraser £125 million. Photo credit – House of Fraser
Funding boost for House of Fraser
Struggling British retailer House of Fraser, which is majority owned by Chinese partners, has received a significant finding boost.
The money will come in the form of support from HSBC and the Industrial and Commercial Bank of China.
The two banks will loan House of Fraser £125 million, alongside offering it a £100 million overdraft facility.
As we reported last month, a Chinese company has already agreed to invest new funds into the iconic British store to reinvigorate the firm.
Inevitably, however, the deal will see some of the company’s poorly performing sites close down.
The full list of closures is as follows:
Altrincham – Aylesbury – Birkenhead – Birmingham – Bournemouth – Camberley – Cardiff – Carlisle – Chichester – Cirencester – Cwmbran – Darlington – Doncaster – Edinburgh – Epsom – Grimsby – High Wycombe – Hull – Leamington Spa – Lincoln – London Oxford Street – London King William Street – Middlesbrough – Milton Keynes – Plymouth – Shrewsbury – Skipton – Swindon – Telford – Wolverhampton – Worcester.
C.banner, the Chinese company that owns Hamley’s toy stores and MIO, has been revealed as the new buyer of a 51 percent stake in House of Fraser from previous owner Sanpower was in the process of selling the firm to another Chinese buyer.
That agreement will see at least £70 million of cash injected into the department chain.