House of Fraser's CVA proposals, which was filed on 6th June, was approved by creditors last week.
According to the retailer, the restructuring which these CVAs will enable is essential to securing the company’s future and accessing new capital from international retailer, C.banner.
House of Fraser CEO Alex Williamson says: “The CVA proposals have been approved by our creditors and we are grateful for their ongoing support and belief in the future of House of Fraser. This was clearly a difficult decision to take but is, ultimately, the only one to secure our future. Our focus is on supporting all of our affected colleagues and we are exploring every opportunity available to them working alongside the Retail Trust and the wider retail community.”
House of Fraser has now started working with landlords and other stakeholders to implement the proposals, including the 31 stores identified for closure (which are likely to cease trading until early 2019) – 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 and Worcester.
Frank Slevin, chairman of House of Fraser, says: “The approval of the CVAs is a seminal moment in House of Fraser’s history. We must now continue with the implementation of our restructuring plan. This is also an important milestone in the transaction with C.banner and moves us toward the completion of the capital injection first announced in May.”
In May, retailer C.banner announced it had entered into a conditional agreement to acquire a 51% stake in House of Fraser Group, currently owned by Nanjing Cenbest.