UK DEPARTMENT STORE HOUSE OF FRASER CLOSING OVER HALF ITS STORES
The move toward online shopping and a Brexit-related rise in prices are causing more pain for British retailers, with department store House of Fraser saying it plans to close over half its stores, including its flagship premises on London’s Oxford Street.
The company filed plans in court Wednesday to close 31 of its 59 stores, which would put over 6,000 jobs at risk. Frank Slevin, Chairman of House of Fraser, said Thursday that the closures are “absolutely necessary if we are to continue to trade and be competitive.”
The store closures follow the acquisition of the company by Chinese fashion conglomerate C.Banner, which recently bought 51 percent of the company. A condition of the deal was that House of Fraser agreed to sort out its debt problems.
As part of the proposal, which requires approval by creditors by June 22, House of Fraser would also move its London Headquarters to Glasgow.
The significant restructuring of the business follows what House of Fraser called “a difficult trading environment” for British retail.
House of Fraser is not alone in having to shrink. Many British retailers are shutting shops as they try to survive in the face of competition from online retailers such as Amazon, a squeeze on consumer budgets and a change in Briton’s spending habits away from fashion and towards holidays and entertainment.
