Headlines are dominated this morning by another big high street name announcing its intent to close a number of stores in a bid to survive.
House of Fraser will close half of its 59 stores in the UK, with potentially 6,000 people losing their jobs.
The House of Fraser stores at threat of closure have been named as:
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 (source)
Like many retailers, conditions on the high street have been difficult in recent years, putting a spotlight on weaknesses and adding pressure from creditors. We’ve seen a number of popular retail chains collapse already in 2018, including Toys R Us, Carpet Right and Maplin.
Accountancy firm KPMG are overseeing the insolvency process for House of Fraser which goes to a vote with creditors on 22 June. The proposed insolvency plans include company voluntary agreements or CVAs, as well as applying for rent reductions for the closing stores and those ones which will remain open. 75% of creditors need to give approval for plans to go ahead.
If your business is facing financially difficulty and needs to restructure its debt in a bit to survive, a CVA may be a solution for you. We give you all the detail about CVAs here.
Alternatively call us for a confidential discussion on 0808 1644 222 or contact us here.