Mon, 28 May 2018 | ADMINISTRATION
House of Fraser is expected to close up to half its UK stores as part of its Company Voluntary Agreement (CVA), which will be implemented from June.
According to the firm's reports, it plans on closing around 30 of its 59 stores across the country as part of the CVA, which is a form of business insolvency that is likely to result in much needed rent cuts for the group on the remainder of the stores.
Although House of Fraser currently refuses to comment, the news come soon after Retail Sector announced the department store chain is struggling to receive approval for the CVA from its landlords, who have criticised plans for rent reductions.
In fact, sources have suggested that the CVA is yet to be put to a vote amongst landlords, who could overturn the insolvency decision if they feel another option such as the full or part sale of the business would be more appropriate.
According to the British Property Federation (BPF) and Revo, which represents landlords and retailers, have added to these concerns, suggesting that members are increasingly likely to reject CVAs as they become more commonplace on the high street.
Commenting on the CVA, Ian Fletcher, director of real estate policy at the BPF, argued that House of Fraser had not followed best practice. "Announcing the CVA via a statement on new investment, whilst helpful to the overall continuation of the business, is highly insensitive when you are asking property investors to absorb large losses."
He said: "We think any discussions on this CVA will therefore be awkward and any support for the CVA given grudgingly."
An award-winning farm and coffee shop, situated in a superb high profile trading position on the A65.
FREEHOLD
This is the exciting sale of a truly profitable and highly successful bioethanol fireplace business established in 2009. With a 4.8-star review on Trustpilot, this business has a stellar reputation and a loyal customer base. It is a leading brand wi...
RELOCATABLE
Established in 2016 this is a highly profitable car dealership. This business has made significant investments to move from a traditional retail model to a ‘Cinch like’ AI-based ‘Tech & Touch’ model – technology led with real human contact at critica...
LEASEHOLD
01
|
Apr
|
Law firms merge to create regional powerhouse | MERGER
A Lincolnshire and Yorkshire law firm have announced they ar...
01
|
Apr
|
Jackson Jackpot falls into administration | ADMINISTRATION
Online competition business Jackson Jackpot Ltd has gone int...
01
|
Apr
|
UK administrations: March 26 – April 1 | ADMINISTRATION
Since our last update, the following businesses have been co...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.