Monday, 6 August 2018

House of Fraser resolves legal battle with landlords as it seeks rescue deal



House of Fraser (HoF) has settled a legal dispute with landlords which had threatened the survival of the embattled department store chain.
 
The agreement means the company can close 31 of its 59 stores next January.
 
 
Landlords had threatened to scupper plans to close the stores after they complained about the company's plans to use a controversial Company Voluntary Arrangement (CVA) to slash rents.


CVAs have been used by many distressed retailers to cut costs. The landlords had complained the plan imposed unfair pain on them.


The settlement - the terms of which are confidential - removes a hurdle to the company's plans to find a financial backer after the Chinese owner of Hamleys decided it would not invest £70m in the chain.




SKY     News.