House of Fraser creditors have approved the retailer’s company voluntary arrangement (CVA) proposals, filed on 6 June.
The retailer said plans for both House of Fraser Limited and House of Fraser (Stores) were approved by creditors. A total of 75% of creditors or more must agree for a CVA to be approved.
HoF said the restructuring the CVAs enable is “essential to both securing the company’s future and accessing new capital from international retailer C Banner”.
It added that it would have a “more sustainable cost base and a platform for future growth to deliver an improved customer proposition.”
HoF will now begin the process of working with landlords and other stakeholders to implement the proposals, including the closure of 31 stores. These stores are anticipated to trade until early 2019.
Around 6,000 jobs are likely to be impacted.
HoF chairman Frank Slevin said: “The approval of the CVAs is a seminal moment in House of Fraser’s history. 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.”
Chief executive Alex Williamson added: “The CVA proposals have been approved by our creditors, and we are grateful for their ongoing support and belief in the future of House of Fraser. This was clearly a difficult decision to take but is, ultimately, the only one to secure our future. Our focus is on supporting all of our affected colleagues and we are exploring every opportunity available to them working alongside the Retail Trust and the wider retail community.”