House of Fraser continues to battle challenging conditions on the high streets of the UK. Photo credit – House of Fraser
House of Fraser denies financial reports
Iconic British department store House of Fraser has denied press reports that it is struggling to reach an agreement with its landlords.
The firm, which is battling challenging conditions on the UK high street, is seeking a company voluntary agreement (CVA) with its creditors, including 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.
However, an unknown number of the group’s 59 stores will be shut, and rent at other sites renegotiated.
The news comes after we reported in April that House of Fraser is set to stock a range of Chinese luxury products.
Offering Chinese brands to British customers could give the troubled retailer a much needed boost, and a chance to stand-out from the competition.
The exact details of which labels will be stocked haven’t been revealed yet.