House of Fraser brings in advisers to consider store closures

Marco Green
April 19, 2018

The company, which has a store in Norwich's Chapelfield shopping centre, has called in experts from finance giant KPMG.

House of Fraser has become the latest retailer to look into store closures and rent reductions.

However, the retailer is now weighing up whether to launch a company voluntary arrangement (CVA) in a bid to hasten its turnaround.

Several retailers have pursued CVAs to save on costs this year.

Its troubles came to the fore in January after it suffered a drop in sales over Christmas.

This could involve closing some of the company's 59 stores, as well as reducing rents at other branches.

United Kingdom high street has already seen a wave of job loses with retailer opting for CVA while other like Carpetright, Maplin and Toys R Us have fallen into administration.

Fashion chain New Look plans to shut 60 stores and has put 980 jobs at risk after agreeing a CVA in March, while Carpetright is also hoping to use the restructuring process to close 81 shops amid waning consumer confidence.

The news comes after rival Debenhams revealed profits had fallen by 85% after bad weather and discounting took their toll.

Other reports by Click Lancashire

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