House of Fraser to close more than half its stores
PUBLISHED: 08:10 07 June 2018 | UPDATED: 14:39 07 June 2018
ARCHANT NORFOLK PHOTOGRAPHIC Â© 2005
House of Fraser has announced plans to shut 31 of its 59 stores across the UK and Ireland as part of a rescue deal, impacting around 6,000 jobs.
The store in intu Chapelfield in Norwich is not one of the stores affected but its flagship store on Oxford Street in London will close.
House of Fraser said it has already informed those whose jobs are impacted by its plans.
The closures are part of a proposed Company Voluntary Arrangement, which will require approval from creditors who will make their decision on June 22.
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.”
The House of Fraser stores identified for closure under the CVA proposal are: 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.
Two stores are excluded from the CVA proposals - Dundrum in the Republic of Ireland and Beatties in Solihull because they are separate legal entities.
As part of the CVA process, House of Fraser also plans to relocate its Baker Street head office and Granite House office in Glasgow to new locations to help cut costs.
The company said it expects stores that are scheduled for closure to remain open until early 2019.