House of Fraser shocked investors and consumers on Thursday by announcing the closure of 31 stores, including its flagship Oxford Street store in London, putting 6,000 jobs at risk.
Frank Slevin, Chairman of House of Fraser said: “Our legacy store estate has created an unsustainable cost base, which without restructuring, presents an existential threat to the business.
“So whilst closing stores is a very difficult decision, especially given the length of relationship House of Fraser has with all its locations, there should be no doubt that it is absolutely necessary if we are to continue to trade and be competitive.”
The company also wants a 25 percent cut in rent at ten stores, with the 31 stores closing set to pay a rent at 30 percent of the current level for seven months.
House of Fraser identified the stores set for closure in a CVA proposal as:
Altrincham, Aylesbury, Birkenhead, Birmingham, Bournemouth, Camberley, Cardiff, Carlisle, Chichester, Cirencester, Cwmbran, Darlington, Doncaster, Edinburgh Frasers, Epsom, Grimsby, High Wycombe, Hull, Leamington Spa, Lincoln, London Oxford Street, London King William Street, Middlesbrough, Milton Keynes, Plymouth, Shrewsbury, Skipton, Swindon, Telford, Wolverhampton, Worcester.
The CVA proposal is still subject to approval.
House of Fraser have been struggling for several months, reporting Q1 results that sounded warning bells for investors. It stands alongside many other high street retailers having a tough time at the moment, including Marks and Spencer and Carpetright.