House of Fraser's woes deepen as it plans restructuring

Cornelia Mascio
Aprile 20, 2018

Owned by the Chinese conglomerate Sanpower, the retailer has appointed KPMG to look at its options, including Company Voluntary Agreement (CVA), according to Sky News.

Several retailers have resorted to CVAs in recent months with fashion stores New Look and Select as well as restaurants Prezzo and Jamie's Italian among them.

The procedure would involve House of Fraser seeking agreement from landlords to cut rents and possibly shutting some of its 59 stores.

House of Fraser, the embattled department store group, has hired KPMG to explore whether it needs to enter a form of bankruptcy in order to put its stretched finances on a stronger footing.

Such a move would allow House of Fraser to close loss-making stores and negotiate deep discounts on rent, and would see it join the spate of high street retailers pursuing CVAs to improve their dismal fortunes.

Sanpower chairman Yuan Yafei has voiced his commitment to House of Fraser and has been pumping millions of pounds into the retailer to keep it on an even keel. Toy R Us was one of the most high-profile retail casualties in the first quarter, with electronics retailer Maplin also going into administration on the same day.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE