House of Fraser has announced it will close 31 stores as part of plans to restructure the business to secure a "viable future".

The troubled department store said up to 2,000 staff and a further 4,000 "brand and concession partners" would be affected.

The company's flagship store on London's Oxford Street is among those set to shut in 2019 if its steps to restructure are approved.

House of Fraser confirmed it has filed proposals for Company Voluntary Arrangements (CVAs) in court on Wednesday to begin the process. </s> House of Fraser is to close 31 of its 59 stores in a plan to dramatically restructure the chain.

If approved by creditors, the move will result in the loss of 6,000 jobs: 2,000 House of Fraser employees and 4,000 brand concession staff.

The full list of closures includes the flagship Oxford Street store and the City of London branch.

Read more: House of Fraser closures list: Oxford Street and City branches to be axed

The head office in Baker Street will also be moved to a new location in a bid to further cut its cost base.

In a kind of insolvency process called a company voluntary arrangement (CVA), House of Fraser's creditors will vote on the proposals on 22 June.

If it passes, this will firm up the deal announced last month to sell a 51 per cent stake in House of Fraser to Hamleys owner C.banner.

The stores slated to close are expected to stay open until early 2019.

“The retail industry is undergoing fundamental change and House of Fraser urgently needs to adapt to this fast-changing landscape in order to give it a future and allow it to thrive," said Frank Slevin, chairman of House of Fraser.

"Our legacy store estate has created an unsustainable cost base, which without restructuring, presents an existential threat to the business. So whilst closing stores is a very difficult decision, especially given the length of relationship House of Fraser has with all its locations, there should be no doubt that it is absolutely necessary if we are to continue to trade and be competitive."

Read more: House of Fraser Group crashes to £44m loss in 2017 </s> Hull's House of Fraser store is set to close after the company announced plans to shut more than half of all its UK shops .

The store in Ferensway has been a cornerstone of the city's shopping scene for years, but financial difficulties have meant the Chinese firm behind the popular retailer have had to put together a rescue plan to ensure the companies long term survival.

In total, House of Fraser is aiming to cut around 6,000 jobs across the UK.

There are currently 59 department stores in the chain and the company has warned that unless creditors and landlords backed its proposals it did "not have a viable future".

Among the other branches of the shop to close are nearby branches in Grimsby and Doncaster, as well as their flagship London - Oxford Street store.

The closure was confirmed in a statement on the House of Fraser website. It said: "Currently, House of Fraser operates 59 leased stores across the UK and Ireland and its property portfolio is unsustainable in its current form.

"Following a comprehensive review of the group’s entire property portfolio, the directors of the companies have identified 31 stores for closure which will reduce the total store estate to 28 stores."

We'll have the latest updates and reaction in our live blog below.

It's completely FREE and features all the latest news, sport and what’s on information. You can download it for iPhone and iPad from Apple's App Store , or get the Android version from Google Play . </s> House Of Fraser Closures: Full List Of Stores To Be Closed

House of Fraser is to close 31 shops, including Oxford Street, affecting 6,000 jobs

The department store chain warned it did "not have a viable future" unless creditors and landlords backed its proposals.

The stores scheduled for closure, which include its flagship London Oxford Street store, will stay open until early 2019.

Full List Of House Of Fraser stores to be closed:

House of Fraser chairman Frank Slevin said: "The retail industry is undergoing fundamental change and House of Fraser urgently needs to adapt to this fast-changing landscape in order to give it a future and allow it to thrive.

"Our legacy store estate has created an unsustainable cost base, which without restructuring, presents an existential threat to the business.

"So whilst closing stores is a very difficult decision, especially given the length of relationship House of Fraser has with all its locations, there should be no doubt that it is absolutely necessary if we are to continue to trade and be competitive." </s> House of Fraser has today announced 31 of its stores across the country will shut.

The chain has announced the major news as it attempts to cut costs following financial difficulties.

The firm will cut 6,000 jobs as a result of the closures, which will see it only have 28 stores remaining in the UK.

The stores up for closure include Hull's branch in the city centre , plus those nearby including Grimsby, Lincoln and Doncaster.

The firm's flagship store in Oxford Street, London, will also be shutting.

House of Fraser announced the news on Thursday morning following long-standing rumours the firm would be cutting staff.

Which House of Fraser stores are closing? </s> Department store chain House of Fraser is to close 31 of its 59 shops, affecting 6,000 jobs, as part of a rescue deal.

If the plan is approved, 2,000 House of Fraser jobs will go, along with 4,000 brand and concession roles.

The stores scheduled for closure, which include its flagship London Oxford Street store, will stay open until early 2019, House of Fraser said.

The retailer needs the approval of 75% of its creditors to go ahead.

Creditors will vote on the insolvency plan, which involves company voluntary arrangements (CVAs), on 22 June.

In May, House of Fraser's Chinese owners Nanjing Cenbest reached a conditional agreement to sell a 51% stake to the Chinese owner of Hamley's, C.banner.

The House of Fraser stores identified for closure:

House of Fraser chairman Frank Slevin said: "The retail industry is undergoing fundamental change and House of Fraser urgently needs to adapt to this fast-changing landscape in order to give it a future and allow it to thrive.

"Our legacy store estate has created an unsustainable cost base which, without restructuring, presents an existential threat to the business."

Closing stores was "a very difficult decision", he said, but "there should be no doubt that it is absolutely necessary if we are to continue to trade and be competitive".
• Why we no longer love department stores

Accountancy firm KPMG, which is overseeing the insolvency process, said the firm had been hit by "mounting pressures facing the UK High Street".

In addition to the store closures, the department store chain is seeking to cut rents by 25% on 10 of the stores it is keeping open.

Of the 31 stores it wants to shut, it is seeking a 70% rent reduction for seven months, after which the stores will close.

A CVA is an insolvency process designed to let a firm with debt problems reach an agreement with creditors to help pay off part or all of its debts and avoid administration or liquidation.

Richard Lim, chief executive of analyst firm Retail Economics, said the plan to shut House of Fraser's Oxford Street store and 30 others was "a huge statement of intent".

"The closure of such an iconic flagship store signals the massive restructuring task at hand," he said.

"Department stores are incredibly expensive to operate and the last few years have seen costs spiralling upwards from business rates, rents and National Living Wage."

House of Fraser started with a shop in the centre of Glasgow almost 170 years ago.

It became a retail empire with more than 100 department stores, including iconic luxury store Harrods in 1959.

Owner Hugh Fraser also acquired Kendals in Manchester and Rackhams in Birmingham.

Hugh's son, also called Hugh, expanded the portfolio with a further 50 stores. The Fraser dynasty came to an end in 1985, when Mohamed al-Fayed took it over.

The House of Fraser Group has annual sales of £1.2bn. It employs about 5,000 people directly and also has 12,500 concession staff. </s> British-based retailer House of Fraser is set to close 31 of its 59 stores, but its Dundrum store in Dublin and its Victoria Square outlet in Belfast will survive the cull.

The company is implementing a restructuring plan that will affect 6,000 jobs - 2,000 House of Fraser employees and 4,000 concessions - in a bid to save the company.

The closures are part of a proposed Company Voluntary Arrangement. CVAs allow insolvent firms to continue trading while paying creditors over a fixed period.

The CVA, a legal process in the UK that requires landlords to agree to reduced rents or terminations of lease, is a condition for the sale of a controlling stake in the department store group to Hong Kong listed company C.banner, that also owns toy shop Hamleys and plans to inject £70 million of fresh capital into House of Fraser.

The stores scheduled for closure, which include the group’s Oxford Street store in London and many outlets in provincial cities in Britain’s north and midlands, will remain open until early in 2019.

The creditor meeting to approve the CVA will be held on June 22nd. Landlords have already signalled their disquiet with the proposal, because it does not impose losses on other creditors or shareholders.

In a statement, House of Fraser said without the restructuring plan, the company did not have a viable future.

The restructuring process will also see the company relocate its head office in Baker Street and its Granite House office in Glasgow to new locations to help cut costs.

House of Fraser said it had held constructive initial discussions with landlords and other key stakeholders.

“The retail industry is undergoing fundamental change and House of Fraser urgently needs to adapt to this fast-changing landscape in order to give it a future and allow it to thrive,” said Frank Slevin, chairman of House of Fraser.

“Our legacy store estate has created an unsustainable cost base, which without restructuring, presents an existential threat to the business. “So whilst closing stores is a very difficult decision, especially given the length of relationship House of Fraser has with all its locations, there should be no doubt that it is absolutely necessary if we are to continue to trade and be competitive.”

The use of CVAs have been criticised by landlords in the UK. Speaking on BBC Radio 4’s Today programme on Thursday morning, Ian Fletcher of the British Property Federation said: “The only way to challenge [a CVA application] at the moment is to go to court - that’s not a particularly appetising proposition for anybody.

“These are big decisions, they involve billions of pounds and they involve people’s jobs and at the moment the only person that is the judge and jury on those is the insolvency practitioner so there is a group already that exists called the pre-pack panel, they could have a role in terms of giving a second opinion.”

Those affected by the store closures have already been informed. Among those set to close are the company’s Oxford Street store in London and stores in Birmingham and Bournemouth.

The House of Fraser store in Dundrum is a separate legal entity. – Additional reporting: PA/Financial Times Service </s> Media playback is unsupported on your device Media caption Why is House of Fraser failing?

Department store chain House of Fraser is to close 31 of its 59 shops, affecting 6,000 jobs, as part of a rescue deal.

If the plan is approved, 2,000 House of Fraser jobs will go, along with 4,000 brand and concession roles.

The stores scheduled for closure, which include its flagship London Oxford Street store, will stay open until early 2019, House of Fraser said.

The firm's boss said the decision to close stores was "as tough as it gets".

Speaking to the BBC, House of Fraser chief executive Alex Williamson described the move as "brutal", adding "we have not taken this decision lightly".

"It is very dramatic for people that we care about a great deal," he said.

"I find it personally very emotional, and I am not making this decision based on anything other than what I consider to be absolutely the best option for House of Fraser and all of our stakeholders."

The retailer needs the approval of 75% of its creditors to go ahead with the rescue plan. Creditors will vote on the plan, which involves company voluntary arrangements (CVAs), on 22 June.

In May, House of Fraser's Chinese owners Nanjing Cenbest reached a conditional agreement to sell a 51% stake to the Chinese owner of Hamley's, C.banner. The sale is conditional on the restructuring plan being approved.

Media playback is unsupported on your device Media caption House of Fraser shop closure decision 'brutal' says boss

The House of Fraser stores identified for closure:

Altrincham • Aylesbury • Birkenhead • Birmingham • Bournemouth • Camberley • Cardiff • Carlisle • Chichester • Cirencester • Cwmbran • Darlington • Doncaster • Edinburgh Frasers • Epsom • Grimsby • High Wycombe • Hull • Leamington Spa • Lincoln • London Oxford Street • London King William Street • Middlesbrough • Milton Keynes • Plymouth • Shrewsbury • Skipton • Swindon • Telford • Wolverhampton • Worcester

'Existential threat'

House of Fraser chairman Frank Slevin said the retail industry was undergoing "fundamental change", and the company "urgently needs to adapt".

"Our legacy store estate has created an unsustainable cost base which, without restructuring, presents an existential threat to the business."

Media playback is unsupported on your device Media caption "'We've got nothing left in the town"

Accountancy firm KPMG, which is overseeing the insolvency process, said the firm had been hit by "mounting pressures facing the UK High Street".

In addition to the store closures, the department store chain is seeking to cut rents by 25% on 10 of the stores it is keeping open.

Of the 31 stores it wants to shut, it is seeking a 70% rent reduction for seven months, after which the stores will close.

Analysis

By Emma Simpson, BBC business correspondent

Image copyright PA

House of Fraser has been living hand to mouth for months. Axing half its stores is a drastic attempt to save the business from collapse.

This is a chain that's had more than its fair share of financial ups and downs over the decades, with a colourful array of owners. But the chain has gradually lost its relevance and suffered from a lack of investment.

It's been struggling for a long time. And in the last year, the increasingly tough conditions on the High Street has exposed its weaknesses, with the result that its problems have finally come to a head.

Even with these store closures, House of Fraser still need to have the right products and experience to pull shoppers into the stores that will be left.

Shoppers 'shocked'

A CVA is an insolvency process designed to let a firm with debt problems reach an agreement with creditors to help pay off part or all of its debts and avoid administration or liquidation.

Richard Lim, chief executive of analyst firm Retail Economics, said the plan to shut House of Fraser's Oxford Street store and 30 others was "a huge statement of intent".

"The closure of such an iconic flagship store signals the massive restructuring task at hand," he said.

"Department stores are incredibly expensive to operate and the last few years have seen costs spiralling upwards from business rates, rents and National Living Wage."

Shoppers outside the Oxford Street store in London expressed surprise at the news of the closure plans.

"I'm shocked," said one. "I've been a customer here for 21 years. I thought, maybe, because it's Oxford Street, they may not close this one. People come to Oxford Street - even if it's just for a look round."

A second shopper said: "Very, very surprised. I do shop here and it's got all the things I need, make-up, clothes - it is a lovely store."

House of Fraser started with a shop in the centre of Glasgow almost 170 years ago.

It became a retail empire with more than 100 department stores, including iconic luxury store Harrods in 1959.

Owner Hugh Fraser also acquired Kendals in Manchester and Rackhams in Birmingham.

Hugh's son, also called Hugh, expanded the portfolio with a further 50 stores. The Fraser dynasty came to an end in 1985, when Mohamed al-Fayed took it over.

The House of Fraser Group has annual sales of £1.2bn. It employs about 5,000 people directly and also has 12,500 concession staff. </s> Up to 6,000 jobs are under threat as House of Fraser plans to close 31 of its 59 stores, including its Oxford Street store, across the UK and Ireland. The closures are part of a proposed Company Voluntary Arrangement (CVA), which will require approval from creditors who will make their decision on June 22. If the CVA is approved by landlords, it will affect up to 2,000 House of Fraser staff and a further 4,000 across brands and concessions. Alex Williamson, chief executive of House of Fraser, said: "Today's announcement is one of the most important in this company's 169-year history. "We, as a management team, have a responsibility to take necessary steps to ensure House of Fraser's survival, which is why we are making these proposals. "We are fully committed to supporting those personally affected by the proposals."

Frank Slevin, chairman of House of Fraser, added: "The retail industry is undergoing fundamental change and House of Fraser urgently needs to adapt to this fast-changing landscape in order to give it a future and allow it to thrive. "Our legacy store estate has created an unsustainable cost base, which without restructuring, presents an existential threat to the business. "So whilst closing stores is a very difficult decision, especially given the length of relationship House of Fraser has with all its locations, there should be no doubt that it is absolutely necessary if we are to continue to trade and be competitive." The CVA proposals were filed with the Court of Session in Edinburgh yesterday before being officially announced by House of Fraser today. Will Wright, restructuring partner at KPMG and a proposed supervisor of the CVAs, said: “The CVAs proposed by House of Fraser give the business a vital lifeline to avoid administration by renegotiating the lease terms of its UK-wide property portfolio, as part of a wider restructuring. “The business has been impacted by the mounting pressures facing the UK high street, with the declining profitability of certain stores exacerbated by costly legacy leases which were originally negotiated many years ago.

“With trading conditions unlikely to materially improve in the short term, the future of House of Fraser is at significant risk unless steps to restructure the business both financially and operationally are taken.” Rob Croxen, restructuring partner at KPMG and second proposed supervisor of the CVAs, added: “House of Fraser currently operates 59 leased stores across the UK and Ireland, although two stores are excluded from the CVA proposals, one store in Ireland and another held by a separate legal entity. Company Voluntary Arrangements are being proposed by two entities, House of Fraser (Stores) Limited and House of Fraser Limited, which will divide the 57 store portfolio included in this proposal into three categories. “For a total of 16 ‘Category 1’ stores, the leases will be retained at current rents. For a further 10 ‘Category 2’ stores, a reduced rent, equivalent to 75% of the current rent, will be sought. Across both these categories, the stores will remain open and continue to trade upon successful implementation of the CVA. “For the remaining 31 stores, a reduced rent, equivalent to 30% of the current rent will be paid for seven months, after which these stores will close. It is important to stress that none of these stores will close on day one, and employees, business rates and suppliers will continue to be paid on time and in full for the duration of the closure period.”

At least 75 percent of creditor approval for each of the CVAs is required for them to proceed, a KPMG statement said. KPMG will spend the coming weeks in further talks with key creditors to ensure they understand the full detail of the proposal. As part of the CVA process, House of Fraser also plans to relocate its Baker Street head office and Granite House office in Glasgow to new locations to help cut costs. The company said it expects stores that are scheduled for closure to remain open until early 2019. </s> Britain's biggest department store Debenhams has gone into administration - leaving 25,000 workers fearing for their jobs, and many high streets at risk of losing a major outlet.

The company was handed over to administrators FTI Consulting on Tuesday morning - who will now reevaluate its assets, debts and make cuts to save the ailing business from collapse.

Despite going into administration, it will continue to trade - with gift cards still valid across stores and online.

As it currently stands, Debenhams has 166 stores in the UK - it employs thousands of workers across its branches, head office and warehouses.

However, about 50 branches have been earmarked for closure in the future. These were originally announced in October and planned for the next three to five years, a dozen are expected to close next year.

Not all branches are at risk though - consultants will first focus on renegotiating rents with landlords to before making any drastic closures.

Debenhams chairman Terry Duddy said: "We remain focused on protecting as many stores and jobs as possible, consistent with establishing a sustainable store portfolio in line with our previous guidance.

"In the meantime, our customers, colleagues, pension holders, suppliers and landlords can be reassured that Debenhams will now be able to move forward on a stable footing."

A spokesman for the company's pension schemes said the schemes had been transferred to the newly incorporated company. "Members can therefore be reassured that the schemes are carrying on as usual."

The chain's lenders - made up of high street banks and US hedge funds - have now taken control of it and will look to sell the business on, while shareholders will lose their investments.

Even Mike Ashley's near-30% stake in the company, which cost about £150million to build up, has been wiped out.

Current owners include Barclays and Bank of Ireland, as well as Silver Point and GoldenTree.

Towards the end of 2018, Debenhams announced it was increasing its store closure plans from 10 to 50.

On Tuesday, it confirmed the same 50 are earmarked for closure - but could not clarify where these would be or when they'd close.

It is estimated the cuts will affect around 4,000 jobs. The first wave of closures, thought to be 12, are expected to happen next year.

Speaking to Mirror Money in October, a Debenhams spokeswoman told us the closures are part of a three to five year plan that will re-shape the 240-year-old chain.

Of all 166 in the UK, 50 of stores that "could be the least profiting" over the next five years are the ones at risk - these make up less than 15% of the chain's overall annual profits.

A spokeswoman added that there are various types of stores that could be classed as safer than others.

It said that the most at risk Debenhams branches will be the smaller ones that tend to bring in the least takings.

Speaking about the ones most likely to stay, it named the five stores that have undergone extensive redevelopment or have opened very recently, such as a newly opened gin bar branch.

Its five flagship stores - which tend to account for the most sales - are also likely to go untouched.

2 of the 50 Debenhams stores that closed in 2018

When will the Debenhams closures happen?

A Debenhams spokeswoman previously told Mirror Money the closures will take place over the next three to five years, however this could be accelerated by it going into administration.

It's expected that the business will assess underperforming stores first, and where possible, attempt to lower rent prices before making any changes.

A spokeswoman told the Mirror any cuts would be communicated to employees before going public.

The first wave of closures, thought to be 12, are not expected happen until early next year.
House of Fraser announces that it intends to close 31 of its 59 stores, including its flagship store on London's Oxford Street.