Future of UK's House of Fraser in doubt after C.banner cancels fundraising (updated)

C banner International Holdings

01/08/2018 16:46

(Adds details, background)
    LONDON, Aug 1 (Reuters) - A rescue deal for British retailer
House of Fraser was thrown into doubt on Wednesday after
C.banner  1028.HK  cancelled planned fundraising for its deal to
become a majority shareholder in the department store.
    House of Fraser said talks about other possible sources of
investment were ongoing, and that an update would be given when
appropriate.
    C.banner, an international retailer, had agreed in May to
buy a 51 percent stake in House of Fraser but earlier on
Wednesday it cancelled a planned share placing that would have
funded the deal and announced a profit warning.  urn:newsml:reuters.com:*:nHKS8VWcBd
 urn:newsml:reuters.com:*:nFWN1US0VR
    "In light of C.banner's announcement... House of Fraser is
in discussions with alternative investors and is exploring
options to obtain the required investment on the same
timetable," the 169-year-old retailer said in a statement.
    C.banner, a major retailer of mid-range to premium footwear
brands in China, bought famous London toy shop Hamleys in 2015.
    House of Fraser had agreed to close stores as part of the
rescue deal, and in June creditors approved a restructuring plan
which would see 31 of its 59 stores close early next year and
pave the way for the loss of 6,000 jobs.
    A string of UK retailers have either gone out of business or
announced plans to close shops in recent months as they struggle
with subdued consumer spending, rising labour costs and higher
business property taxes as well as growing online competition.

    

 (Reporting by Alistair Smout; editing by Stephen Addison)
 ((alistair.smout@thomsonreuters.com; +44 207 542 7064; Reuters
Messaging: alistair.smout.thomsonreuters.com@reuters.net))