House of Fraser to close 31 stores, including two London flagships and last Brown Muff
House of Fraser has confirmed the closure of more than half of its estate, including flagship stores on Oxford Street in London’s West End and King William Street in the City.
The struggling department store chain, which has 56 stores and two outlets in the UK and Ireland, has issued a list of 31 stores it plans to close as part of its company voluntary arrangement activities as it tries to keep its head above water.
It is part of a plan for the firm to secure new funding, which would see its current majority shareholder, Chinese firm Sanpower, transfer its 89% holding to another China-based firm C.banner, which also owns toy retailer Hamley’s.
The other 11% is owned by controversial Sports Direct boss Mike Ashley, who complained earlier this year of being "shut out" of the firm by Sanpower.
C.banner has promised an injection of cash on the condition of the company voluntary arrangement - an instrument which allows a firm to reduce rents and end leases in a bid to stay afloat - going ahead.
Two days ago, House of Fraser was forced to deny speculation it was on the brink of collapse, calling it “inaccurate and unhelpful” to suggest it was clambering to secure support from its lenders.
“Our legacy store estate has created an unsustainable cost base, which without restructuring, presents an existential threat to the business,” chairman Frank Slevin was quoted as saying to the BBC on Thursday.
“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.”
House of Fraser is the latest chain to vacate many British high streets, after the collapse of electronics retailer Maplin and toy stalwart Toys R Us earlier in the year, and as Marks & Spencer plans to close 100 locations.
It also comes less than two years after House of Fraser competitor British Home Stores closed its last location, after entering administration in 2016.
The closures will spell the death of a number of legacy brands gobbled up by an acquisition-hungry House of Fraser during the 20th century, including the Yorkshire-based chain Brown Muff, taken in by the chain in 1977.
Brown Muff’s flagship in Bradford was closed in 1995, with the House of Fraser in Skipton - earmarked for closure - being the last surviving remnant of the northern empire.
House of Fraser currently employs 6,000 people, with at least a further 11,000 working concessions within its departments.
The House of Fraser stores which will close are 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, and Worcester.