UK's House of Fraser to close stores, secures C.banner investment (updated)

C banner International Holdings

02/05/2018 14:36

(Adds details)
    LONDON, May 2 (Reuters) - Britain's House of Fraser said it
would close some of its stores as a condition of securing new
funds from international retailer C.banner  1028.HK , which will
become the majority owner of the department stores group with a
51 percent stake.
    Existing shareholder Nanjing Cenbest, part of the Sanpower
Group, will remain a minority shareholder, the retailer said on
Wednesday.
    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 said it would launch a Company Voluntary
Agreement (CVA) next month to allow it to restructure its stores
portfolio.
    Chairman Frank Slevin said C.banner acquiring 51 percent of
the group, together with the new capital and restructuring, was 
a step to securing House of Fraser's long-term future.
    He said the company needed to adapt to rapidly changing
shopping behaviour, including the growth of online.
    "House of Fraser's future will depend on creating the right
portfolio of stores that are the right size and in the right
location," he said.
    "We also know that if we are to deliver a sustainable,
long-term business then we need to make difficult decisions
about our underperforming legacy stores."
     The company, which was founded in 1849, has stores in 59
locations across Britain and Ireland, including a flagship shop
on London's Oxford Street.
    CVA's have been used to restructure a number of retailers in
recent years, including fashion brand New Look and floor
coverings store Carpetright.


 (Reporting by Paul Sandle, editing by James Davey and Louise
Heavens)
 ((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters
Messaging: paul.sandle.thomsonreuters.com@reuters.net))