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KPMG assesses options

CVA option for struggling House of Fraser

Jenners is part of struggling House of Fraser group (photo by Terry Murden)

Department store chain House of Fraser has asked its advisers to include a potential Company Voluntary Arrangement among the options for restructuring the company.

Six thousand staff at HoF’s 59 stores, which includes Jenners, are braced for possible closure and job losses.

In January it asked landlords to cut rents, after poor Christmas trading and there is uncertainty over the future of its store at the corner of Princes Street in Edinburgh.

Under a CVA House of Fraser would seek agreement from landlords to reduce rents and possibly shut some of its stores.

In a statement a spokesperson said the chain had appointed KPMG and was “working closely with them to look at options that best support our transformation programme”.

House of Fraser is the latest big name retailer to face severe pressure. Toys R Us and Maplin went into administration on the same day in February, while New Look and Carpetright have both entered into CVAs.

Mothercare, Debenhams and Homebase are also looking to reorganise their business models.

House of Fraser was acquired by Chinese conglomerate Sanpower in 2014.

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