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Embattled department store chain House of Fraser has announced it is to close 31 stores as part of its CVA proposals, due to its current property portfolio being “unsustainable in its current form”.
Following a comprehensive review of the group’s entire property portfolio, the directors of the company has identified 31 stores for closure which will reduce the total store estate to 28 stores.
As part of the CVA process, the company has also proposed to relocate its Baker Street head office and Granite House office in Glasgow to new locations. This will be done to reduce costs and and further secure the group’s future.
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.”
He added: “We believe the proposal has sought to find a solution that is fair for all parties, enabling us to secure vital new capital from C.banner. Our immediate focus is on our colleagues with whom we are communicating openly and supporting at this time.”
