Media playback is unsupported on your device Media caption Why is House of Fraser failing?

Department store chain House of Fraser is to close 31 of its 59 shops, affecting 6,000 jobs, as part of a rescue deal.

If the plan is approved, 2,000 House of Fraser jobs will go, along with 4,000 brand and concession roles.

The stores scheduled for closure, which include its flagship London Oxford Street store, will stay open until early 2019, House of Fraser said.

The firm's boss said the decision to close stores was "as tough as it gets".

Speaking to the BBC, House of Fraser chief executive Alex Williamson described the move as "brutal", adding "we have not taken this decision lightly".

"It is very dramatic for people that we care about a great deal," he said.

"I find it personally very emotional, and I am not making this decision based on anything other than what I consider to be absolutely the best option for House of Fraser and all of our stakeholders."

The retailer needs the approval of 75% of its creditors to go ahead with the rescue plan. Creditors will vote on the plan, which involves company voluntary arrangements (CVAs), on 22 June.

In May, House of Fraser's Chinese owners Nanjing Cenbest reached a conditional agreement to sell a 51% stake to the Chinese owner of Hamley's, C.banner. The sale is conditional on the restructuring plan being approved.

Media playback is unsupported on your device Media caption House of Fraser shop closure decision 'brutal' says boss

The House of Fraser stores identified for closure:

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

'Existential threat'

House of Fraser chairman Frank Slevin said the retail industry was undergoing "fundamental change", and the company "urgently needs to adapt".

"Our legacy store estate has created an unsustainable cost base which, without restructuring, presents an existential threat to the business."

Media playback is unsupported on your device Media caption "'We've got nothing left in the town"

Accountancy firm KPMG, which is overseeing the insolvency process, said the firm had been hit by "mounting pressures facing the UK High Street".

In addition to the store closures, the department store chain is seeking to cut rents by 25% on 10 of the stores it is keeping open.

Of the 31 stores it wants to shut, it is seeking a 70% rent reduction for seven months, after which the stores will close.

Analysis

By Emma Simpson, BBC business correspondent

Image copyright PA

House of Fraser has been living hand to mouth for months. Axing half its stores is a drastic attempt to save the business from collapse.

This is a chain that's had more than its fair share of financial ups and downs over the decades, with a colourful array of owners. But the chain has gradually lost its relevance and suffered from a lack of investment.

It's been struggling for a long time. And in the last year, the increasingly tough conditions on the High Street has exposed its weaknesses, with the result that its problems have finally come to a head.

Even with these store closures, House of Fraser still need to have the right products and experience to pull shoppers into the stores that will be left.

Shoppers 'shocked'

A CVA is an insolvency process designed to let a firm with debt problems reach an agreement with creditors to help pay off part or all of its debts and avoid administration or liquidation.

Richard Lim, chief executive of analyst firm Retail Economics, said the plan to shut House of Fraser's Oxford Street store and 30 others was "a huge statement of intent".

"The closure of such an iconic flagship store signals the massive restructuring task at hand," he said.

"Department stores are incredibly expensive to operate and the last few years have seen costs spiralling upwards from business rates, rents and National Living Wage."

Shoppers outside the Oxford Street store in London expressed surprise at the news of the closure plans.

"I'm shocked," said one. "I've been a customer here for 21 years. I thought, maybe, because it's Oxford Street, they may not close this one. People come to Oxford Street - even if it's just for a look round."

A second shopper said: "Very, very surprised. I do shop here and it's got all the things I need, make-up, clothes - it is a lovely store."

House of Fraser started with a shop in the centre of Glasgow almost 170 years ago.

It became a retail empire with more than 100 department stores, including iconic luxury store Harrods in 1959.

Owner Hugh Fraser also acquired Kendals in Manchester and Rackhams in Birmingham.

Hugh's son, also called Hugh, expanded the portfolio with a further 50 stores. The Fraser dynasty came to an end in 1985, when Mohamed al-Fayed took it over.

The House of Fraser Group has annual sales of £1.2bn. It employs about 5,000 people directly and also has 12,500 concession staff.</s>Department store chain House of Fraser is to close 31 of its 59 shops, affecting 6,000 jobs, as part of a rescue deal.

If the plan is approved, 2,000 House of Fraser jobs will go, along with 4,000 brand and concession roles.

The stores scheduled for closure, which include its flagship London Oxford Street store, will stay open until early 2019, House of Fraser said.

The retailer needs the approval of 75% of its creditors to go ahead.

Creditors will vote on the insolvency plan, which involves company voluntary arrangements (CVAs), on 22 June.

In May, House of Fraser's Chinese owners Nanjing Cenbest reached a conditional agreement to sell a 51% stake to the Chinese owner of Hamley's, C.banner.

The House of Fraser stores identified for closure:

House of Fraser chairman Frank Slevin said: "The retail industry is undergoing fundamental change and House of Fraser urgently needs to adapt to this fast-changing landscape in order to give it a future and allow it to thrive.

"Our legacy store estate has created an unsustainable cost base which, without restructuring, presents an existential threat to the business."

Closing stores was "a very difficult decision", he said, but "there should be no doubt that it is absolutely necessary if we are to continue to trade and be competitive".
• Why we no longer love department stores

Accountancy firm KPMG, which is overseeing the insolvency process, said the firm had been hit by "mounting pressures facing the UK High Street".

In addition to the store closures, the department store chain is seeking to cut rents by 25% on 10 of the stores it is keeping open.

Of the 31 stores it wants to shut, it is seeking a 70% rent reduction for seven months, after which the stores will close.

A CVA is an insolvency process designed to let a firm with debt problems reach an agreement with creditors to help pay off part or all of its debts and avoid administration or liquidation.

Richard Lim, chief executive of analyst firm Retail Economics, said the plan to shut House of Fraser's Oxford Street store and 30 others was "a huge statement of intent".

"The closure of such an iconic flagship store signals the massive restructuring task at hand," he said.

"Department stores are incredibly expensive to operate and the last few years have seen costs spiralling upwards from business rates, rents and National Living Wage."

House of Fraser started with a shop in the centre of Glasgow almost 170 years ago.

It became a retail empire with more than 100 department stores, including iconic luxury store Harrods in 1959.

Owner Hugh Fraser also acquired Kendals in Manchester and Rackhams in Birmingham.

Hugh's son, also called Hugh, expanded the portfolio with a further 50 stores. The Fraser dynasty came to an end in 1985, when Mohamed al-Fayed took it over.

The House of Fraser Group has annual sales of £1.2bn. It employs about 5,000 people directly and also has 12,500 concession staff.</s>House of Fraser has announced it will close 31 stores as part of plans to restructure the business to secure a "viable future".

The troubled department store said up to 2,000 staff and a further 4,000 "brand and concession partners" would be affected.

The company's flagship store on London's Oxford Street is among those set to shut in 2019 if its steps to restructure are approved.

House of Fraser confirmed it has filed proposals for Company Voluntary Arrangements (CVAs) in court on Wednesday to begin the process.</s>Up to 6,000 jobs are under threat as House of Fraser plans to close 31 of its 59 stores, including its Oxford Street store, across the UK and Ireland. The closures are part of a proposed Company Voluntary Arrangement (CVA), which will require approval from creditors who will make their decision on June 22. If the CVA is approved by landlords, it will affect up to 2,000 House of Fraser staff and a further 4,000 across brands and concessions. Alex Williamson, chief executive of House of Fraser, said: "Today's announcement is one of the most important in this company's 169-year history. "We, as a management team, have a responsibility to take necessary steps to ensure House of Fraser's survival, which is why we are making these proposals. "We are fully committed to supporting those personally affected by the proposals."

Frank Slevin, chairman of House of Fraser, added: "The retail industry is undergoing fundamental change and House of Fraser urgently needs to adapt to this fast-changing landscape in order to give it a future and allow it to thrive. "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 CVA proposals were filed with the Court of Session in Edinburgh yesterday before being officially announced by House of Fraser today. Will Wright, restructuring partner at KPMG and a proposed supervisor of the CVAs, said: “The CVAs proposed by House of Fraser give the business a vital lifeline to avoid administration by renegotiating the lease terms of its UK-wide property portfolio, as part of a wider restructuring. “The business has been impacted by the mounting pressures facing the UK high street, with the declining profitability of certain stores exacerbated by costly legacy leases which were originally negotiated many years ago.

“With trading conditions unlikely to materially improve in the short term, the future of House of Fraser is at significant risk unless steps to restructure the business both financially and operationally are taken.” Rob Croxen, restructuring partner at KPMG and second proposed supervisor of the CVAs, added: “House of Fraser currently operates 59 leased stores across the UK and Ireland, although two stores are excluded from the CVA proposals, one store in Ireland and another held by a separate legal entity. Company Voluntary Arrangements are being proposed by two entities, House of Fraser (Stores) Limited and House of Fraser Limited, which will divide the 57 store portfolio included in this proposal into three categories. “For a total of 16 ‘Category 1’ stores, the leases will be retained at current rents. For a further 10 ‘Category 2’ stores, a reduced rent, equivalent to 75% of the current rent, will be sought. Across both these categories, the stores will remain open and continue to trade upon successful implementation of the CVA. “For the remaining 31 stores, a reduced rent, equivalent to 30% of the current rent will be paid for seven months, after which these stores will close. It is important to stress that none of these stores will close on day one, and employees, business rates and suppliers will continue to be paid on time and in full for the duration of the closure period.”

At least 75 percent of creditor approval for each of the CVAs is required for them to proceed, a KPMG statement said. KPMG will spend the coming weeks in further talks with key creditors to ensure they understand the full detail of the proposal. As part of the CVA process, House of Fraser also plans to relocate its Baker Street head office and Granite House office in Glasgow to new locations to help cut costs. The company said it expects stores that are scheduled for closure to remain open until early 2019.</s>Hull's House of Fraser store is set to close after the company announced plans to shut more than half of all its UK shops .

The store in Ferensway has been a cornerstone of the city's shopping scene for years, but financial difficulties have meant the Chinese firm behind the popular retailer have had to put together a rescue plan to ensure the companies long term survival.

In total, House of Fraser is aiming to cut around 6,000 jobs across the UK.

There are currently 59 department stores in the chain and the company has warned that unless creditors and landlords backed its proposals it did "not have a viable future".

Among the other branches of the shop to close are nearby branches in Grimsby and Doncaster, as well as their flagship London - Oxford Street store.

The closure was confirmed in a statement on the House of Fraser website. It said: "Currently, House of Fraser operates 59 leased stores across the UK and Ireland and its property portfolio is unsustainable in its current form.

"Following a comprehensive review of the group’s entire property portfolio, the directors of the companies have identified 31 stores for closure which will reduce the total store estate to 28 stores."

We'll have the latest updates and reaction in our live blog below.

It's completely FREE and features all the latest news, sport and what’s on information. You can download it for iPhone and iPad from Apple's App Store , or get the Android version from Google Play .</s>British-based retailer House of Fraser is set to close 31 of its 59 stores, but its Dundrum store in Dublin and its Victoria Square outlet in Belfast will survive the cull.

The company is implementing a restructuring plan that will affect 6,000 jobs - 2,000 House of Fraser employees and 4,000 concessions - in a bid to save the company.

The closures are part of a proposed Company Voluntary Arrangement. CVAs allow insolvent firms to continue trading while paying creditors over a fixed period.

The CVA, a legal process in the UK that requires landlords to agree to reduced rents or terminations of lease, is a condition for the sale of a controlling stake in the department store group to Hong Kong listed company C.banner, that also owns toy shop Hamleys and plans to inject £70 million of fresh capital into House of Fraser.

The stores scheduled for closure, which include the group’s Oxford Street store in London and many outlets in provincial cities in Britain’s north and midlands, will remain open until early in 2019.

The creditor meeting to approve the CVA will be held on June 22nd. Landlords have already signalled their disquiet with the proposal, because it does not impose losses on other creditors or shareholders.

In a statement, House of Fraser said without the restructuring plan, the company did not have a viable future.

The restructuring process will also see the company relocate its head office in Baker Street and its Granite House office in Glasgow to new locations to help cut costs.

House of Fraser said it had held constructive initial discussions with landlords and other key stakeholders.

“The retail industry is undergoing fundamental change and House of Fraser urgently needs to adapt to this fast-changing landscape in order to give it a future and allow it to thrive,” said Frank Slevin, chairman of House of Fraser.

“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 use of CVAs have been criticised by landlords in the UK. Speaking on BBC Radio 4’s Today programme on Thursday morning, Ian Fletcher of the British Property Federation said: “The only way to challenge [a CVA application] at the moment is to go to court - that’s not a particularly appetising proposition for anybody.

“These are big decisions, they involve billions of pounds and they involve people’s jobs and at the moment the only person that is the judge and jury on those is the insolvency practitioner so there is a group already that exists called the pre-pack panel, they could have a role in terms of giving a second opinion.”

Those affected by the store closures have already been informed. Among those set to close are the company’s Oxford Street store in London and stores in Birmingham and Bournemouth.

The House of Fraser store in Dundrum is a separate legal entity. – Additional reporting: PA/Financial Times Service</s>House of Fraser is to close 31 of its 59 stores in a plan to dramatically restructure the chain.

If approved by creditors, the move will result in the loss of 6,000 jobs: 2,000 House of Fraser employees and 4,000 brand concession staff.

The full list of closures includes the flagship Oxford Street store and the City of London branch.

Read more: House of Fraser closures list: Oxford Street and City branches to be axed

The head office in Baker Street will also be moved to a new location in a bid to further cut its cost base.

In a kind of insolvency process called a company voluntary arrangement (CVA), House of Fraser's creditors will vote on the proposals on 22 June.

If it passes, this will firm up the deal announced last month to sell a 51 per cent stake in House of Fraser to Hamleys owner C.banner.

The stores slated to close are expected to stay open until early 2019.

“The retail industry is undergoing fundamental change and House of Fraser urgently needs to adapt to this fast-changing landscape in order to give it a future and allow it to thrive," said Frank Slevin, chairman of House of Fraser.

"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."

Read more: House of Fraser Group crashes to £44m loss in 2017</s>House of Fraser has today announced 31 of its stores across the country will shut.

The chain has announced the major news as it attempts to cut costs following financial difficulties.

The firm will cut 6,000 jobs as a result of the closures, which will see it only have 28 stores remaining in the UK.

The stores up for closure include Hull's branch in the city centre , plus those nearby including Grimsby, Lincoln and Doncaster.

The firm's flagship store in Oxford Street, London, will also be shutting.

House of Fraser announced the news on Thursday morning following long-standing rumours the firm would be cutting staff.

Which House of Fraser stores are closing?</s>The mayor of London Sadiq Khan has hit out at the "betrayal of millions of Londoners" after Oxford Street pedestrianisation plans were shelved by Westminster City Council yesterday.

"This will be seen as a betrayal of the millions of Londoners and visitors to our city who would have benefited from making Oxford Street a safer, healthier and better environment," he said.

Khan hinted he wasn't going to walk away from the plans without a fight though, and that all the main mayoral candidates had backed the proposals at the last election.

Read more: Mayor says more pedestrianisation could be on the cards after Oxford Street

The project was a good example of two political parties putting politics aside, working together to improve our city for everyone. This now poses a real threat to the future of Oxford Street, which could not be worse timed, coming on the same day House of Fraser announced they will be closing their Oxford Street store. I won’t walk away from Oxford Street. It’s too important for our city.

It emerged yesterday that Westminster City Council had taken the proposals to create a traffic-free area in central London off the table "for good".

Leader of the council, Nickie Aiken, said in a letter to residents that it was "very apparent" that the majority of Westminster residents who responded to the consultations did not support the plans. A consultation from earlier this year secured wider backing, though a third of respondents said they did not support the proposals.

In response to the mayor's comments, Aiken said in a statement:

I utterly reject any suggestion that there is any kind of betrayal. Quite the contrary, we are sticking up for the people who know best, those who live and work in the district. It was clear through two public consultations and recent council elections that local people do not support the pedestrianisation proposals. But doing nothing to improve the area is not an option either if we are to maximise the potential benefits from the opening of the Elizabeth Line. The news that the House of Fraser will be closing their Oxford Street store only confirms our view that we all have to work harder to help the retail industry to grow and evolve, not simply stand still or just focus on traffic.

The idea was to create traffic-free space in central London in time for the full launch of Elizabeth Line services, with buses and black cabs among other forms of transport getting banished. East-west traffic was going to be restricted from entering Oxford Street between Orchard Street and Oxford Circus by December 2018.

The plans were drawn up to address air quality concerns, the high frequency of collisions - around 60 a year, and severe overcrowding during the busiest parts of the day. The introduction of the Elizabeth Line is expected to significantly increase visitor numbers in the area, according to Transport for London.

Read more: Oxford Street businesses are up in arms over planned pedestrianisation</s>House Of Fraser Closures: Full List Of Stores To Be Closed

House of Fraser is to close 31 shops, including Oxford Street, affecting 6,000 jobs

The department store chain warned it did "not have a viable future" unless creditors and landlords backed its proposals.

The stores scheduled for closure, which include its flagship London Oxford Street store, will stay open until early 2019.

Full List Of House Of Fraser stores to be closed:

House of Fraser chairman Frank Slevin said: "The retail industry is undergoing fundamental change and House of Fraser urgently needs to adapt to this fast-changing landscape in order to give it a future and allow it to thrive.

"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."
House of Fraser announces that it intends to close 31 of its 59 stores, including its flagship store on London's Oxford Street.