Creditors of UK retailer House of Fraser back survival plan (updated)

C banner International Holdings

22/06/2018 14:43

(Adds details)
    LONDON, June 22 (Reuters) - Creditors of House of Fraser
approved the struggling British department store group's
survival plan at meetings on Friday, the retailer said in a
statement.
    Earlier this month, the Chinese-owned retailer said it would
seek creditor approval for Company Voluntary Arrangements (CVA)
that would see 31 of its 59 stores close early next year and the
potential loss of 6,000 jobs.  urn:newsml:reuters.com:*:nL5N1T918G
    The 169-year House of Fraser needed the CVA to go through to
secure new capital from Chinese retailer C.banner  1028.HK .
    Last month C.banner agreed to become House of Fraser's
majority owner with a 51 percent stake, with Nanjing Cenbest
retaining a minority holding. Nanjing Cenbest had paid 480
million pounds ($638 million) for an 89 percent stake in 2014.
 urn:newsml:reuters.com:*:nL8N1S94PO
    “The approval of the CVAs is a seminal moment in House of
Fraser’s history," said chairman Frank Slevin.
    "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.”
    A CVA, which allows firms to avoid insolvency or
administration, has also been taken this year by fellow UK
retail strugglers - fashion chain New Look, floor coverings
group Carpetright  CPRC.L  and mother-and-baby goods retailer
Mothercare  MTC.L .
($1 = 0.7525 pounds)

 (Reporting by James Davey; editing by Stephen Addison and
Elisabeth O'Leary)
 ((james.davey@thomsonreuters.com; +44 20 7542 7674; Reuters
Messaging: james.davey.thomsonreuters.com@reuters.net))