Published: Fri, June 08, 2018
Markets | By Otis Pena

House Of Fraser Closures: Full List Of Stores To Be Closed

House Of Fraser Closures: Full List Of Stores To Be Closed

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.

House of Fraser said it had on Wednesday filed proposals for Company Voluntary Arrangements (CVA) in the United Kingdom courts to proceed with the restructuring.

In a kind of insolvency process called a company voluntary arrangement (CVA), House of Fraser's creditors will vote on the proposals on 22 June.

He said: "The business has been impacted by the mounting pressures facing the United Kingdom high street, with the declining profitability of certain stores exacerbated by costly legacy leases which were originally negotiated many years ago".

But it will see 28 of its 59 stores nationally close - putting thousands of jobs on the line.

The group said it also plans to relocate its Baker Street head office and the Granite House office in Glasgow to help slash costs and "secure House of Fraser's future".

The decision to close stores was "very hard", said Frank Slevin, the company's chairman. "We are fully commited to supporting those personally affected by the proposals".

Closing stores was "a very hard decision", he said, but "there should be no doubt that it is absolutely necessary if we are to continue to trade and be competitive".

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He added: 'If these measures aren't enough, we will if necessary evaluate the legal situation here or there'. He added that the government's powers to intervene "were not sufficiently used" in the past.

House of Fraser said it had already informed members of staff impacted by the closure of the store.

The announcement, described as one of the most important in the company's 169-year history, had been feared but will still come as a bitter blow to the dozens employed at the Stamford Quarter branch.

House of Fraser is closing 31 of its 59 shops including the chain's outlet in Cirencester.

House of Fraser was acquired by the Highland consortium in 2006 and after the takeover, renamed all but the Darlington store as House of Fraser.

Its decline has been rapid, with the 480 million pounds ($645 million) paid in 2014 by Nanjing Cenbest, part of China's Sanpower Group, for an 89 percent stake, looking like a deal from a bygone era.

"However, the retail environment has changed drastically in recent years, meaning that House of Fraser is no longer just competing with Debenhams, John Lewis Home or Marks & Spencer locally, but with Amazon, eBay and other online retailers, meaning that ultimately tough decisions have to be made".

Before today's announcement, the group had 59 locations across the United Kingdom and Ireland, and employed around 5,000 people directly and 12,500 concession staff.

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