House of Fraser to close stores and slash 6,000 jobs
House of Fraser has staved off the risk of administration as the green light was given by creditors to axe more than half of its store estate, resulting in up to 6,000 job losses, while additional cost cutting plans could also see it relocate its Granite House office in Glasgow.
The struggling department store chain will close 31 out of its 59 outlets through a company voluntary arrangement (CVA), which will also allow it to secure rent reductions on its remaining shops.
The House of Fraser store on Princes Street in Edinburgh’s west end will be among the stores to shut, affecting 127 jobs.
Closures will affect up to 2,000 staff and a further 4,000 workers across brands and concessions.
House of Fraser secured the backing of more than 75 per cent of creditors, including landlords, for the CVA at a meeting yesterday.
Company chairman Frank Slevin described the vote as “satisfactory”.
He added: “I am now focused on the implementation of the business plan. We will continue to focus on that going forward. Today has given us part of the solution to that.”
Mr Slevin described the store closure plan as a “seminal moment” in House of Fraser’s history.