House of Fraser CVA approved
House of Fraser's creditors are have agreed to a rescue plan which will result in 31 store closures.
Creditors including landlords and suppliers met to vote on the company voluntary arrangement (CVA) today, and have passed the proposal with no amendments.
“The approval of the CVAs is a seminal moment in House of Fraser’s history," commented chairman Frank Slevin.
"We must now continue with the implementation of our restructuring plan. This is also an important milestone in the transaction with C.banner and moves us toward the completion of the capital injection first announced in May.”
There had been unrest among many landlords in the build-up to the vote, but today's result will allow House of Fraser to close more than half its stores and gain significant rent cuts on several others.
An extension to House of Fraser's loans and a cash injection from new owner C.banner were both dependant on the approval of the CVA.
MPs of affected constituencies have expressed their fears that the restructuring plans will leave holes in town centres and result in thousands of job losses.
Some 6,000 jobs are expected to be lost as a result of the CVA.
Will Wright, restructuring partner at KPMG and joint supervisor of the CVA, said: “The approval of these CVAs provides House of Fraser with the breathing space it needs to proceed with its proposed operational restructuring plan across a smaller core portfolio of stores.”