House of Fraser: still hanging by a thread

It’s been a long, hot summer for House of Fraser, the 169-year-old department store chain that has been battling for survival while dicing with angry landlords, Chinese nepotists and a string of would-be buyers never quite willing to commit. A potential £70m lifeline was lost last week when Hong Kong-listed C.banner (which bought Hamleys in 2015), abandoned plans to invest. But here’s some luck at last, said the Financial Times. House of Fraser has settled a legal challenge from landlords protesting plans – outlined in a controversial “company voluntary arrangement” (CVA) – to shut half of its 59 stores. “The settlement could prove crucial to attracting a bidder, as it removes a significant hurdle to a deal.” HOF has had a chequered history, said Oliver Shah in The Sunday Times, but the main reason it is “teetering on the brink” is “four years of opaque and shambolic ownership” by Sanpower Group – a Chinese conglomerate run by “a supposed billionaire”, Yuan Yafei. Indeed, the most “contentious element” of the group’s CVA was the plan to sell a 51% stake to C.banner, which is “run by Yuan’s brother-in-law”, Chen Yixi. Landlords, badly hit themselves, “objected to the idea that either Chinese company might profit from the restructuring”.

“House of Fraser’s demise would be the most astonishing event yet in a tragedy playing out across Britain’s high streets,” said Shah. It would put 17,500 jobs at risk and cause “chaos for shopping centre owners”. Big names sniffing around include Sports Direct’s Mike Ashley, and Philip Day, who owns Edinburgh Woollen Mill. But time is running out, said Sarah Butler in The Guardian. “The retailer urgently needs cash” to meet its quarterly rent bill and fund the monthly payroll. Let’s hope that white knight doesn’t arrive too late.