House of Fraser to close stores
More woe for the beleaguered high street as another big name faces restructuring
In another sign of distress on the UK’s beleaguered high-street retail sector, House of Fraser has announced plans to close stores in a bid to stay afloat.
The chain’s new Chinese owner, C.banner, which also own Hamleys toy stores, intends to enter a company voluntary arrangement (CVA), under which it is likely to close some stores and renegotiate rents on others.
“A CVA is designed to help a struggling company to pay back a proportion of its debts over time,” says the BBC. “It involves a strict repayment scheme overseen by an insolvency practitioner and must be approved by at least three quarters of the firm's creditors.”
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
House of Fraser has 59 stores in the UK and employ roughly 17,500 people including concession staff.
It is hoped the move, which House of Fraser chairman, Frank Slevin, said is aimed at creating “a leaner business that better serves the rapidly changing behaviours of a customer base” will save the chain from the fate of other legacy high street names, such as BHS, Toys R Us and Maplin which have all gone into administration.
“Retailers have been facing an uphill struggle on the high street in the face of weak consumer confidence and rising costs linked to the National Living Wage and hikes to business rates” says The Daily Telegraph.
The BBC’s Daniel Thomas says the recent crisis engulfing Britain’s high street sector is due to a “perfect storm” of pressures, including: squeezed income, the shift to online shopping, changing consumer tastes, rising overheads and a glut of too many shops.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Saint Paul de Vence: a paradise for art lovers
The Week Recommends The hilltop gem in the French Riviera where 20th century modernism flourished
By Alexandra Zagalsky Published
-
'People in general want workers to earn a decent living'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
What might a Trump victory mean for the global economy?
Today's Big Question A second term in office for the 'America First' administration would send shockwaves far beyond the United States' shores
By Rafi Schwartz, The Week US Published
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right now
Speed Read Britain is currently in the grip of an ‘employment crisis’
By The Week Staff Published
-
Will the energy war hurt Europe more than Russia?
Speed Read European Commission proposes a total ban on Russian oil
By The Week Staff Published
-
Will Elon Musk manage to take over Twitter?
Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
By The Week Staff Last updated
-
Shoppers urged not to buy into dodgy Black Friday deals
Speed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
By The Week Staff Published
-
Ryanair: readying for departure from London
Speed Read Plans to delist Ryanair from the London Stock Exchange could spell ‘another blow’ to the ‘dwindling’ London market
By The Week Staff Published
-
Out of fashion: Asos ‘curse’ has struck again
Speed Read Share price tumbles following the departure of CEO Nick Beighton
By The Week Staff Published
-
Universal Music’s blockbuster listing: don’t stop me now…
Speed Read Investors are betting heavily that the ‘boom in music streaming’, which has transformed Universal’s fortunes, ‘still has a long way to go’
By The Week Staff Published
-
EasyJet/Wizz: battle for air supremacy
Speed Read ‘Wizz’s cheeky takeover bid will have come as a blow to the corporate ego’
By The Week Staff Published