House of Fraser is the latest victim of the high street’s demise after the famous company decided to close 31 of its 59 stores, including its flagship store on Oxford Street in London.
The famous company, who began trading back in 1849, warned it did “not have a viable future” unless creditors and landlords backed its proposals.
Around 6,000 jobs will be cut as House of Fraser becomes the latest highstreet icon to seek a Company Voluntary Arrangement (CVA) to avoid becoming a casualty of the crisis that has been facing retailers.
Around 2,000 House of Fraser staff will lose their jobs and a further 4,000 across brands and concessions.
House of Fraser secured the backing of more than 75 percent of creditors, including landlords
Chairman Frank Slevin said: “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 famous chain will undertake the closures through a CVA, which will also allow it to secure rent reductions on its remaining shops.
The stores under threat of closure include: 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 Willam Street, Middlesbrough, Milton Keynes, Plymouth, Shrewsbury, Skipton, Swindon, Telford, Wolverhampton, Worcester.
With the UK retail sector struggling, there have been a spate of store closures and subsequent job losses over the last year.
After Homebase was sold for just £1 earlier this month, Mothercare has also confirmed that it will close 50 stores across the country, cutting 800 jobs in another hit for British retailers.
In what has been a bad year for bricks and mortar retails, so far this in 2018 Toys R Us announced plan to close a further 75 stores in the UK; Carpetright said that it will close 92 of its 400 shops; Prezzo pizza confirmed that it will shut 94 of its 300 restaurants, putting around 500 jobs at risk, and Marks & Spencer announced that it will close a total of 100 shops by 2022.
More to follow….