House of Fraser’s troubles deepen

Embattled department store House of Fraser has appointed KPMG to advise on a restructuring plan that could involve store closures and job losses.

The retailer, which is owned by Chinese conglomerate Sanpower, has drafted in advisers to look at a range of options, one of which could be an insolvency procedure known as a Company Voluntary Agreement (CVA).

Several retailers have pursued CVAS to save on costs this year. The procedure would involve House of Fraser seeking agreement from landlords to cut rents and possibly shutting some of its 59 stores, which include Jenners in Edinburgh. House of Fraser has 6,000 employees and 11,500 concession staff.

However, the department store chain has not yet decided what form of restructuring it will opt for.