House of Fraser closing more than half of its stores, affecting thousands of jobs

Chloe Chaplain7 June 2018

House of Fraser has announced it is shutting more than half of its stores, including Oxford Street, affecting thousands of jobs.

The retail giant said it plans to shut 31 of its 59 stores across the UK and Ireland as part of a rescue deal.

The closures, if approved, will affect up to 2,000 direct House of Fraser employees and up to 4,000 other jobs.

It is part of a company voluntary arrangement (CVA) - a controversial insolvency procedure used by several struggling retailers - which will need to be approved by the landlords.

The retailer has announced plans to shut 31 of its 59 stores
PA

The restructuring plan would leave the group with just 28 stores in the United Kingdom and includes plans to relocate the Baker Street head office and the Granite House office in Glasgow to new locations.

It said the shops earmarked for closure would remain open until early 2019.

Full list of stores set to close

Altrincham, 

Aylesbury, 

Birkenhead,

Birmingham, 

Bournemouth, 

Camberley, 

Cardiff, 

Carlisle, 

Chichester, 

Cirencester, 

Cwmbran, 

Darlington, 

Doncaster, 

Edinburgh Frasers, 

Epsom, 

Grimsby, 

High Wycombe, 

Hull, 

Leamington Spa, 

Lincoln, 

London Oxford Street, 

London King Willam Street, 

Middlesbrough, 

Milton Keynes, 

Plymouth, 

Shrewsbury, 

Skipton, 

Swindon, 

Telford, 

Wolverhampton,

Worcester. 

Frank Slevin, Chairman of House of Fraser said the company was adapting to the retail industry's "fast-changing landscape in order to give it a future and allow it to thrive".

He said the HoF stores currently present "an unsustainable cost base" which "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.

"Our immediate focus is on our colleagues with whom we are communicating openly and supporting at this time.”

Alex Williamson, CEO of House of Fraser said: “Today’s announcement is one of the most important in this company’s 169-year history. We, as a management team, have a responsibility to take necessary steps to ensure House of Fraser’s survival, which is why we are making these proposals.

“I would like to offer my heartfelt thanks to all my colleagues at House of Fraser for working tirelessly throughout this difficult period. We are fully committed to supporting those personally affected by the proposals.”

As well as the store closures, House of Fraser's restructuring deal will also see the rents slashed for a further 10 stores that will remain open.

Landlords, who must vote through the plan, have already expressed serious concerns about the proposals and met on Tuesday to discuss how to respond to House of Fraser.

At least 75 per cent of creditor approval is needed, with the vote set to take place on June 22.

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