House of Fraser issues statement that CVA is still 'on track'
4 Jun 2018
House of Fraser has issued a statement in which it denies all recent media speculation that its future is hanging in balance. The department store group claims its business 'is still on track' as reports indicate that it may close its flagship store on London's Oxford Street.
The department store group released its statement Sunday evening, following what it called "inaccurate and unhelpful media speculation." In the statement House of Fraser reiterated its CVA plan for early June, which is a condition from the upcoming transaction that will see international retailer C.banner acquire 51 percent of House of Fraser from its parent company, Cenbest.
"It also continues to be the case that this transaction will see the injection of significant fresh liquidity into the business," wrote the company in the statement. "House of Fraser is in close dialogue with its lending banks who are supportive of the company’s plans and the transaction with C.banner is progressing as expected."
C.banner confirmed on June 1 that it had successfully entered into a subscription agreement for new shares in C.banner, which will act as funding for the purchase of its 51 percent stake in House of Fraser. "We are on track with our plans to enter the proposed CVA agreement," said Frank Slevin, Chairman. "The funding news from C.banner is another important milestone in this complex process. We continue to have very constructive talks with our banks and other stakeholders who are positive about the plans."
Alex Williamson, CEO, added: "If we are to deliver a sustainable, long-term business supported by new liquidity then we need to make difficult decisions about our underperforming legacy stores. I am conscious that inaccurate speculation only feeds the ongoing uncertainty for my colleagues in the business and I reassure them we will share further news when we have it."
The statement from House of Fraser comes as reports that landlord from its UK store portfolio are unhappy with its plans for a CVA.