House of Fraser to axe 1 in 3 stores and sack hundreds

HOUSE of Fraser is poised to axe one in three of its stores and slash hundreds of jobs in a bid to survive a brutal squeeze on the High Street.

The 169-year-old department store chain, currently owned by the Chinese firm Sanpower, will also change hands for the fourth time in just under three decades after a sales slump.

It will be taken over by C Banner, the Chinese owner of Hamleys toy store, if it can get permission to cut rents across its business and close down loss-making shops.

Industry experts suggest House of Fraser could close at least 20 stores – roughly a third of those it runs.

Bosses say the drastic action will create a ‘leaner’ business to meet changing shopping habits as consumers spend more online.

The plan entails C Banner buying a 51 per cent stake in the firm, but it is dependent on House of Fraser getting approval for restructuring at a crunch meeting next month.

It hopes to undergo an insolvency procedure called a company voluntary arrangement, which involves slashing rent payments.

This has angered landlords who accused the firm of ‘ripping up’ contracts and putting pensioners’ savings – invested in property – at risk.