House of Fraser creditors set to decide department store’s fate

House of Fraser’s creditors are set to decide the 169-year-old department store chain’s fate today as they assess takeover bids from billionaire tycoons Mike Ashley and Philip Day and the retail turnaround fund Alteri Investors.

The move comes as The Frasers department store on Princes Street in Edinburgh is to close earlier than expected. A statement from the retailer said all the staff who want to remain can be accommodated at the Jenners department store. It is now set to shut on 15 September after the landlord served notice to quit. House of Fraser (HOF) had named the former Binn’s shop as the only Scottish store to face closure. However, it was reported last night that Pricewaterhousecoopers spent most of yesterday negotiating on behalf of Hof’s lenders and bondholders with at least three prospective buyers. The detailed nature of the talks will preserve hope among the 17,500 people who work for HOF and the concession operators in its 59 stores that a substantial number of jobs can be salvaged. More than 6000 roles have already been earmarked for loss as part of a process which was subject to a now-settled legal challenge from some of Hof’s landlords.

The Edinburgh Woollen Mill Group-owner’s bid is said to include expanding a restructuring plan which has been agreed by Hof’s creditors.