Concerns continue to mount over the future of retailer House of Fraser, after funding negotiation talks collapsed.
Department store House of Fraser is the latest in high street shops to feel the pinch in a difficult trading environment, amid stunted consumer spending and higher rents.
According to the Sunday Times, talks were held between the retailer and turnaround specialist Alteri Investors, a turnaround specialist.
However, the negotiations are understood to have failed to progress any further over debt concerns.
Specifically, House of Fraser is looking to refinance or extend the terms of £224 million in debt, which is set to be repaid in 2019.
A spokesman said: “House of Fraser is a privately-owned business. We have the full financial support of our shareholders.”
Back in 2014, the retailer was bought by Sandpower, which is owned by Chinese businessman Yuan Yafei.
In September it was revealed that Mr Yafei’s company injected £25 million in cash into the faltering department store, amid widening losses.
Since the acquisition, The high-street giant has sold off a portion of its brand names and intellectual property for £30 million, alongside identifying £26 million of annual cost savings, in a bid to turnaround its fortunes.
Fears are now mounting that House of Fraser may become the latest in collateral damage, following a string of high street closures, which have dominated the business news cycle in recent weeks.
Maplin and Toys R Us fell into administration last month, after both retailers failed to locate a buyer.
Similarly, restaurant owners in the U.K such as Cafe Rouge owner, Casual Dining Group, and Prezzo have announced the closure of hundreds of stores, in a bid to streamline costs.
Prezzo, which is owned by TPG Capital, announced on Friday the closure of some 94 restaurant locations.
As it stands, Debenhams has 59 stores across the U.K, employing some 6000 staff and an additional 11,500 concession workers.
