Sign up to FREE email alerts from croydonadvertiser - Daily Invalid Email Something went wrong, please try again later. Subscribe Thank you for subscribing We have more newsletters Show me See our privacy notice In an attempt to rescue its falling profits, retailer House of Fraser has announced that 31 of its stores will close, reducing the number of stores across the UK to 28. The announcement comes after Chinese retail giants C.banner acquired a 51% stake in House of Fraser, with the intention of increasing its current financial state. In a statement from House of Fraser, it says the retailer anticipates the stores will remain open until early 2019, at which point they will shut for good or in some rare cases, relocated. Thankfully for Croydon shoppers, the Centrale store is not on the list of planned store closures. The statement goes on to say around 6,000 employees will be affected by the store closures, with job losses likely. Commenting on the closures, Frank Slevin, Chairman of House of Fraser said: "T he 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. (Image: David Cook) "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. Alex Williamson, CEO 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. "I would like to offer my heartfelt thanks to all my colleagues at House of Fraser for working tirelessly throughout this difficult period. We are fully commited to supporting those personally affected by the proposals." The full list of planned store closures<doc-sep>For the latest Trafford news sign up to the MyTrafford newsletter here Invalid Email Something went wrong, please try again later. Subscribe Thank you for subscribing We have more newsletters Show me See our privacy notice Thousands of jobs are at risk after House of Fraser announced they were to close 31 stores. House of Fraser said the planned closures, which include its Altrincham store in Greater Manchester, come as part of a company voluntary arrangement (CVA) - a controversial insolvency procedure in vogue among struggling retailers. The chain plan to close 31 of its 59 stores across the UK and Ireland. Frank Slevin, chairman of House of Fraser, 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." 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. The company said the shops earmarked for closure would remain open until early 2019. Here are the stores set to 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 Worcester<doc-sep>At least 11,000 jobs are at risk as House of Fraser prepares to close more than half its UK stores and Poundworld teeters on the brink of administration, in the latest blow to the high streets. House of Fraser unveiled a plan designed to stave off collapse which will mean the closure of 31 of its 59 department stores including its Oxford Street flagship in London and its shops in cities including Birmingham, Cardiff and Edinburgh. As many as 6,000 jobs could be lost - 2,000 direct HoF employees and 4,000 who work for in-store concessions. The move by the 169-year-old company is part of a rescue plan that will also lead to House of Fraser moving out of its head offices in London and Glasgow and closing a distribution centre in Milton Keynes where more than 400 more jobs are under threat. Up to 5,000 more jobs are at risk at the 355-store Poundworld chain which on Thursday gave notice that it intends to appoint administrators. The legal process provides court protection from creditors for 10 days while the company attempts to mount a last-ditch rescue. However, even if a buyer comes forward at the 11th hour, they would be expected to close down a large part of the store estate. Poundworld’s private equity owner TPG Capital is understood to be unwilling to pump more cash into the business. TPG said a key reason for Poundworld’s problems was the Brexit blow to sterling, which pushed up the cost of imported goods. The two chains’ difficulties come after a string of retailers and restaurant groups, including Mothercare, Carpetright, New Look, Prezzo and Jamie’s Italian, have announced plans to close hundreds of outlets putting more than 35,000 jobs on the block so far this year. DIY chain Homebase is also expected to close about 60 stores after a £1 rescue takeover by restructuring specialist Hilco which will be completed this month. Quick Guide History of House of Fraser Show House of Fraser traces its origins back to 1849, when Hugh Fraser and James Arthur opened a drapery shop on the corner of Argyle Street and Buchanan Street in the centre of Glasgow. By 1941, it had expanded into a number of shops in Scotland and became House of Fraser. The 1950s marked a period of major expansion for House of Fraser. In 1953, still owned by the Fraser family, the group extended its geographic reach across Scotland and into north-east England and Carlisle with the purchase of the Binns chain, which had its origins in an early 19th century Sunderland drapery business. Harrods, the luxury London department store, and Dickins & Jones, became part of the House of Fraser group in the late 1950s. Growth continued in the 1970s, with the addition of well-known names such as Rackhams, the Army & Navy stores and Dingles. Change came in 1985 when the House of Fraser group was bought by the Al Fayed family for £615m and a new business strategy was announced, with plans to replace smaller branches with larger stores. In 1994 House of Fraser was floated on the London Stock Exchange at a market value of £484m, with Harrods split off and kept under private ownership by Al Fayed. A takeover bid from Scottish retail entrepreneur Tom Hunter was rejected in 2003 and some branches in Scotland were sold or closed. However, two years later the group was in expansion mode again, buying 16 stores under the Jenners and Beatties brands became part of the group in 2005. Large new store openings followed in 2008 at locations including Belfast, Bristol and the Westfield shopping centre in west London. In 2013, House of Fraser opened its first store overseas, in Abu Dhabi’s World Trade Center shopping mall. House of Fraser was bought by China’s Nanjing Xinjiekou Department Store Co – also known as Nanjing Cenbest – in 2014. Angela Monaghan Was this helpful? Thank you for your feedback. Alex Williamson, House of Fraser’s chief executive, said that without the proposed store closures the business was likely to collapse. “A decision to close this number of stores is not done lightly. This is really grim,” Williamson said. “It is a highly emotional, highly regrettable situation that none of us either imagined or wanted to see happen, but there is simply no alternative.” The 31 stores are set to close by early next year. The store chain also wants immediate rent reductions on the stores of 30% under a company voluntary arrangement (CVA), a form of insolvency that enables a business to rearrange deals with landlords. House of Fraser is also asking for rents to be cut by 25% at 10 other stores. The CVA requires the approval of three-quarters of creditors at a meeting on 22 June. Outside the Oxford Street store, which has been trading since 1879, Jeanne Bateman from Norwich said: “I’m a big high street shopper. I’m very sad to see so many big high street names closing down. I feel sorry for us the shopper, and very sorry for the people who work here.” Her daughter, Catherine Wilamowska, agreed, but added that because she lives in a small village she does all her shopping online. Wilamowska’s habits reflect a changing world in which about a fifth of all UK retail spending has moved on to the internet. While online specialists such as Amazon, Boohoo and Asos continue to expand rapidly, traditional retailers are struggling to adapt as many are stuck in now unprofitable stores on long and expensive leases. Switching to selling online also requires heavy investment in IT and delivery networks at a time when cost prices have risen as a result in fall of the value of the pound. Many retailers are also facing big increases in business rates, together with higher labour costs as a result of the national minimum wage and apprenticeship levy. At the same time shoppers have reined back spending on clothing and household goods because of a squeeze on spare cash and a shift to renting rather than owning homes. The 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.” In a presentation to investors, the company admitted it had made mistakes with its website and by cutting back on in-house womenswear brands, but it also blamed Brexit and the fall in the value of the pound for pushing up costs for retailers. House of Fraser said sales slumped by 7.4% at established stores in the year to the end of January and operating profits were down nearly 40% to £19.8m. Dave Gill, national officer at the shopworkers’ union Usdaw, said: “This is devastating news for House of Fraser employees. We are receiving calls from loyal and long-serving staff who are extremely worried, including those who work in brand concessions and are not directly employed by House of Fraser.” He added that although HoF does not recognise Usdaw, he had asked the retailer “to engage in urgent talks, so that we can challenge the business case, investigate what can be done to save jobs and represent our members’ best interests”. The restructuring and closures are a condition of a deal that will give control of House of Fraser to the Chinese C.banner business, which also owns Hamleys. C.banner is buying a 51% stake in the parent company of the ailing department store group for £140m, leaving the current owner, Nanjing Cenbest, part of China’s Sanpower conglomerate, with a minority stake. Guardian business email sign-up It is feared House of Fraser could struggle to complete the CVA, as landlords and lenders have expressed concerns about a lack of consultation and fears that C.banner will not be able to inject sufficient cash into the business to turn it around. Williamson said management had been forced to take brave decisions, including closing some of its most high-profile stores, to try to ensure the business had a future.<doc-sep>
Birmingham city centre's House of Fraser store is closing down, it has been announced today. The store, formerly Rackhams, at the junction of Cherry Street and Corporation Street, is expected to remain open until early 2019. The store is among 31 (of its 59) across the UK which are to close. Midlands stores: Leamington, Shrewsbury, Telford, Wolverhampton and Worcester are also closing. Some 6,000 jobs are to be affected. The group operates shops in Sutton Coldfield and Solihull, too. These stores are understood to be remaining open. (Image: Birmingham Post and Mail) (Image: Birmingham Mail) As part of the restructuring plan, which is being drawn up with the help of accountancy firm KPMG, House of Fraser could also ask for rent reductions on a further 11 outlets. The store closures will be undertaken through a Company Voluntary Agreement (CVA), a controversial insolvency procedure in vogue among struggling retailers. (Image: Trevor Roberts) (Image: Birmingham Mail) Frank Slevin, chairman of House of Fraser, 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, which has 6,000 employees and 11,500 concession staff, requires the approval of 75% of its creditors for its plan to go ahead. The retailer's board is trying to push through its restructuring plan while securing new investment from Hamleys owner C.banner. C.banner is being lined up to buy a 51% stake in House of Fraser and invest £70 million into what remains of the business. C.banner has raised £124 million in new shares to fund the transaction. The department store's Chinese owner, Sanpower, could publish details of its plans as soon as Thursday. Other retailers undertaking CVAs in a bid to keep trading include New Look, Mothercare and Carpetright. Restaurant businesses have also been seeking to cut their costs with store closure programmes, with Carluccio's, Prezzo, Byron and Prezzo all pushing through CVAs this year. 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.