Is Fraser doomed?
17,000 jobs at risk if crisis talks to save store chain break down
STORE chain House of Fraser is in crisis talks to avoid a collapse that would threaten thousands of jobs.
The Chinese-owned firm is in discussions with lenders ahead of a make-or-break rescue plan next week that could see 20 of its 59 stores close.
The closures, plus rent cuts on other stores, are a condition of securing funds from a new Chinese backer. Little-known C. Banner, which already owns toy shop Hamleys, has agreed a conditional £70million deal to acquire 51% of House of Fraser.
But banks are reported frus- trated by the progress and, according to reports, if the money does not materialise, the firm could file to appoint administrators within days, putting 17,000 staff at risk. A spokesman said: “Constructive engagement continues.”
As Britain’s High Street crisis worsened yesterday, Mothercare got the backing of creditors to shut 50 stores in a move that puts 800 jobs at risk.
And Poundworld, which employs 5,700 people at 355 stores, was is in crisis talks to secure emergency private equity funding as its advisers drew up plans for its collapse should talks fail.
Sources said Poundworld was gearing up to announce investment from a new shareholder alongside a restructuring plan.