KentOnline

bannermobile

News

Sport

Business

What's On

Advertise

Contact

Other KM sites

CORONAVIRUS WATCH KMTV LIVE SIGN UP TO OUR NEWSLETTERS LISTEN TO OUR PODCASTS LISTEN TO KMFM
SUBSCRIBE AND SAVE
Business

House of Fraser store closures: Have Kent stores survived?

By: Chris Britcher cbritcher@thekmgroup.co.uk

Published: 09:22, 07 June 2018

Updated: 09:29, 07 June 2018

Department store House of Fraser has confirmed it is to close more than half of its stores as part of a major restructuring.

But Kent's two outlets - in Maidstone and Bluewater - appear to have survived.

The company has filed for what is known as a company voluntary arrangement (CVA).

House of Fraser in Maidstone is not among those closing

This seeks to reach an agreement with creditors to spread repayments or agree on reduced sums to allow it to continue to operate.

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

mpu1

House of Fraser bosses say the proposals are central to the significant restructuring of the business, without which it "does not have a viable future".

The proposing of the CVAs follows the announcement on May 2, of Chinese firm C.banner’s conditional agreement to acquire a 51% stake in House of Fraser Group Ltd and intention to introduce significant new capital.

House of Fraser stores to close as part of restructure

The Chinese fashion conglomerate already owns toy giant Hamleys.

House of Fraser says its property portfolio is "unsustainable in its current form" and so will reduce the number to 28 as well as relocating its head office.

The company has held constructive initial discussions with landlords and other key stakeholders.

Pending approval of the CVAs, it is anticipated those stores scheduled for closure will remain open until early in 2019.

If the process is approved it will affect up to 2,000 House of Fraser staff and a further 4,000 brand and concession partners.

mpu2

Those impacted by the proposed changes have already been informed.

The consultation on the CVA proposal will take place over the next 17 days and House of Fraser will seek approval from its creditors on June 22.

During the period the company will continue to trade as normal both through its stores and online.

Frank Slevin, chairman of House of Fraser, said: “The retail industry is undergoing fundamental change and House of Fraser urgently needs to adapt to this fast-changing landscape in order to give it a future and allow it to thrive.

"Our legacy store estate has created an unsustainable cost base, which without restructuring, presents an existential threat to the business. So whilst closing stores is a very difficult decision, especially given the length of relationship House of Fraser has with all its locations, there should be no doubt that it is absolutely necessary if we are to continue to trade and be competitive."

Stores to be closed are in: Altrincham, Aylesbury, Birkenhead, Birmingham, Bournemouth, Camberley, Cardiff, Carlisle, Chichester, Cirencester, Cwmbran, Darlington, Doncaster, Edinburgh Frasers, Epsom, Grimsby, High Wycombe, Hull, Leamington Spa, Lincoln, London Oxford Street, London King Willam Street, Middlesbrough, Milton Keynes, Plymouth, Shrewsbury, Skipton, Swindon, Telford, Wolverhampton, Worcester.

More by this author

sticky

© KM Group - 2024