News House of Fraser considers store closures

Discussion in 'Retail' started by Cody, Apr 20, 2018.

  1. Cody

    Cody

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    House of Fraser has called in accounting firm KPMG to advise on the best course of action to take moving forwards in these current retail circumstances. It's expected however KPMG will look at the possibility of House of Fraser entering into a CVA (Company Voluntary Arrangement).

    If the retailer does enter into a Company Voluntary Arrangement we could end up seeing many House of Fraser store close down. It is unsure just how many stores will close and how much of their staff could face job losses, however there are currently around over 17,000 total employed (6,000 staff, 11,500 concession).

    Due to poor trading throughout Christmas the retailer asked their landlords to reduce rent, and despite a cash injection of around £30m into the retailer in September alone, provided by it's Chinese owner, Sanpower, the retailer has still struggled to stay afloat.

    From January 2018, House of Fraser announced a 2.9% drop in sales throughout December compared to the previous year, and a 7.5% drop on online sales.

    A spokesperson for House of Fraser said: "We are working with KPMH to look at options that best support our transformation programme.

    House of Fraser is a privately-owned business. We have the full financial support of our shareholders."
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