Chinese owner mulling options
Fears for Frasers Glasgow store under rescue plan
Where it all began: Fraser in Glasgow (LDC)
House of Fraser’s department store in Glasgow is said to be among those at risk under a drastic plan to save the business, it is claimed today.
The Buchanan Street store, where the business was founded 169 years ago, and the site in Oxford Street, London are said to be among 29 potential victims of a cull by the company’s Chinese owner.
House of Fraser, which also owns Jenner’s and another store in Princes Street, Edinburgh, is expected to announce a rescue plan with landlords and other creditors, possibly on Wednesday, which may see its 59 stores across the UK slashed by half.
It wants to restructure the business through a company voluntary arrangement which will provide a degree of protection. It would mean focusing the stores portfolio on those in busy shopping centres rather than high streets, according to the Daily Mail.
However, landlords are said to be unhappy at the plan for rent reductions on those stores that will remain open.
The plan requires 70% of landlords to agree to the plan by the Chinese owner of Hamleys, C Banner, which has made access to £70m of investment conditional on a restructuring deal being done.
Failure could see House of Fraser plunged into administration, putting the jobs of 17,000 staff at risk.