House of Fraser has today (Friday) announced that the Company Voluntary Arrangement (CVA) proposals filed on June 6 have been approved by the companies’ creditors, confirming the Chichester store will close.
The creditors’ meetings for House of Fraser (Stores) Limited and House of Fraser Limited were held at 10am and the company confirmed that both CVA proposals were approved.
A statement from House of Fraser said the restructuring which these CVAs enable is essential to both securing the company’s future and accessing new capital from international retailer C.banner.
Following the restructuring House of Fraser will have a more sustainable cost base and a platform for future growth to deliver an improved customer proposition.
It said it would now begin the process of working with landlords and other stakeholders to implement the proposals, including the 31 stores identified for closure.
All stores identified for closure are anticipated to trade until early 2019.
The statement said the directors are absolutely committed to supporting all colleagues affected by the store closures.
Commenting on the result of the vote, Frank Slevin, chairman of House of Fraser, said: “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.”
Alex Williamson, chief executive officer of House of Fraser, said: “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.”
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