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House of Fraser has announced that its Company Voluntary Arrangement (CVA) proposals have been approved by the company’s creditors in a final agreement that will see 31 stores close.
The creditors’ meetings were held at 10am today and the company with both CVA proposals were approved. House of Fraser said the restructuring which these CVAs enable is essential to both securing the company’s future and accessing new capital from international retailer C.banner, which is an investor.
House of Fraser will now begin the process of working with landlords and other stakeholders to implement the proposals, including the 31 stores identified for closure. Directors have said they are “absolutely committed to supporting all colleagues affected by the store closures”.
Frank Slevin, chairman of House of Fraser, said: “The approval of the CVAs is a seminal moment in House of Fraser’s history. We must now continue with the implementation of our restructuring plan. This is also an important milestone in the transaction with C.banner and moves us toward the completion of the capital injection first announced in May.”
Alex Williamson, CEO of House of Fraser, added: “The CVA proposals have been approved by our creditors and we are grateful for their ongoing support and belief in the future of House of Fraser. This was clearly a difficult decision to take but is, ultimately, the only one to secure our future.
“Our focus is on supporting all of our affected colleagues and we are exploring every opportunity available to them working alongside the Retail Trust and the wider retail community.”
The stores to close include: 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 William Street, Middlesbrough, Milton Keynes, Plymouth, Shrewsbury, Skipton, Swindon, Telford, Wolverhampton, Worcester.
All stores identified for closure are anticipated to trade until early 2019.
