Also sell stake to Hamleys owner C. Banner
In a move which could potentially put hundreds of jobs at risk, struggling House of Fraser has today confirmed plans to close some of its stores as a condition of securing new funds from international retailer C. Banner.
C. Banner, also owns toy store Hamleys, will become the majority owner of House of Fraser with a 51 per cent stake. Meanwhile, the existing shareholder, Nanjing Cenbest, will remain a minority shareholder.
According to reports, the retailer’s stores will be shut early next year. No details have yet been released on the number or locations of stores affected.
House of Fraser’s chairman Frank Slevin told media: “There is a need to create a leaner business that better serves the rapidly changing behaviours of a customer base which increasingly shops channel agnostically. House of Fraser’s future will depend on creating the right portfolio of stores that are the right size and in the right location.
“C.banner’s investment is a vote of confidence in our prospects. We also know that if we are to deliver a sustainable, long-term business then we need to make difficult decisions about our underperforming legacy stores. I am all too aware that this creates uncertainty for my colleagues in the business and so we will be transparent with them throughout the process.”