Department stores to go as new Chinese owner steps in

6

STRUGGLING House of Fraser will reveal a wave of proposed store closures next month, sparking fears of big job losses.

Bosses refused to say how many could shut but insiders say about 20 of their 59 branches lose money.

The department store firm, who have 6000 employees and 11,500 concession staff, have seen sales fall.

A Chinese investor is demanding the shake-up – which could also involve store rents being slashed – as a condition of providing “vital” funds.

Little-known C.Banner, who already own world-famous toy shop Hamleys, have agreed a conditional £70million deal to acquire 51 per cent of House of Fraser. They are buying the stake from another Chinese company, Nanjing Cenbest.

The two firms already have a close link. C.Banner, major footwear makers, are run by Chen Yixi, brother-in-law of Yuan Yafei, the billionaire whose Sanpower group are House of Fraser’s ultimate owners. Cenbest will remain a “significant minority shareholder”.

Sports Direct tycoon Mike Ashley owns an 11 per cent stake and it is unknown how he will respond. The store closures will be included in a proposed Company Voluntary Arrangement, used by a host of retailers this year to shut shops.

House of Fraser said: “The reduction of the store portfolio will provide the business with an effective platform for future growth.”

Retail expert Richard Hyman warned the chain have had too many stores for decades. He said the firm had suffered a “revolving door” of top talent.

The British Property Federation said the use of CVAs was harming investors in retail property owners.

Ian Fletcher, their director of real estate policy, said: “It is an insolvency process where pensioners’ savings, invested in property, are at risk and therefore it is not victimless.” LOSER Stores have seen their sales fall THREE in five adults admit to being “completely overwhelmed” by weekly tasks.

The average person says they have 33 things to complete most weeks, a survey by the Financial Conduct Authority (FCA) found. Three-quarters of people said they would use this weekend’s bank holiday to catch up.

The FCA commissioned the poll to highlight the deadline of August 29 next year to lodge claims for mis-sold PPI compensation.