House of Fraser has confirmed plans to close some of of its stores as part of a restructuring plan that will see C. banner international, the Chinese owner of Hamleys toy shop, acquire a 51 per cent stake in the company, for a reported sum of £70 million.
House of Fraser currently has 59 stores in the UK with more than 6,000 employees and 11,500 concession staff.
The department store’s chairman, Frank Slevin, said “House of Fraser’s future will depend on creating the right portfolio of stores that are the right size and in the right location.”
He also added: “We also know that if we are to deliver a sustainable, long-term business then we need to make difficult decisions about our under performing legacy stores”.
House of Fraser is to start a Company Voluntary Agreement (CVA) in June to allow the company to continue trading and pay its creditors over a fixed period. However, the agreement is conditional on the closing of an unknown number of stores.