The struggling retailer will downsize significantly under the turnaround plans. Photo credit – House of Fraser
House of Fraser to close half of stores
Upto 29 of House of Fraser’s 59 stores could be set to close under plans to cut the firm’s annual £44 million loss.
That’s according to British newspaper The Daily Mail, who report on progress made as part of a negotiation with creditors, known as a company voluntary agreement (CVA).
Only yesterday, we reported that House of Fraser had denied press reports that it is struggling to reach an agreement with its landlords.
In a statement, it criticised ”inaccurate and unhelpful media speculation” about the progress of these plans.
As we reported last month, a Chinese company has agreed to invest new funds in iconic British store House of Fraser to reinvigorate the firm.
Inevitably, however, the deal will see some of the company’s poorly performing sites close down.
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.
The agreement will see at least £70 million of cash injected into the department chain.