UK's House of Fraser to close 31 stores, 6,000 jobs at stake (updated)

C banner International Holdings

07/06/2018 08:33

(Adds detail)
    LONDON, June 7 (Reuters) - British department store group
House of Fraser said on Thursday it has proposed closing 31
stores in a move likely to result in 6,000 job losses.
    The restructuring plan would leave the group with just 28
stores in the United Kingdom.
    House of Fraser said it had on Wednesday filed proposals for
Company Voluntary Arrangements (CVA) in the UK courts to proceed
with the restructuring.
    "These proposals are central to the significant
restructuring of the business, without which House of Fraser
does not have a viable future," it said.
    The CVA route, which allows firms to avoid insolvency or
administration, has already 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 .
    House of Fraser's CVA proposal follows last month's
announcement that international retailer C.banner  1028.HK  had
agreed to become the majority owner of the group with a 51
percent stake, with existing shareholder Nanjing Cenbest, part
of the Sanpower Group, remaining a minority
shareholder. urn:newsml:reuters.com:*:nL8N1S94PO
    It said if the CVA is approved by creditors at a June 22
meeting the stores identified for closure will remain open until
early 2019.
    Approval will affect up to 2,000 House of Fraser employees
and a further 4,000 brand and concession partners.

 (Reporting by James Davey)
 ((guy.faulconbridge@thomsonreuters.com; 07825218698;))