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Landlords tried to block House of Fraser CVA

House of Fraser’s restructuring plans faced tough opposition from landlords, and several high-profile investors attempted to block the department store chain’s company voluntary arrangement (CVA).

Landlords including British Land, Derwent, and Aldgate Investment voted against the proposals, according to documents filed on Companies House.

Other landlords, including Hammerson and Intu, voted in favour of the proposals.

A report of the voting outcome of the CVA showed that 91.82% of creditors for House of Fraser (Stores) Limited voted for the resolution, with 8.18% of creditors voting against.

The report shows the outcome for one of the two CVA proposals voted on by creditors, with a second CVA vote for House of Fraser Limited due to be published.

It is thought that discussions between landlords impacted by the CVA and legal advisers are ongoing, while the businesses decide whether to challenge the CVA in court. They have 28 days from the CVA’s date of approval on 22 June to do so.

A spokesman for KPMG, joint supervisors for the CVA, said: “Had the CVA not been proposed it was very likely the company would have gone into administration. As key creditors, landlords had a significant vote in the House of Fraser process. Indeed, had all landlords voted against the proposals, then they would not have gone ahead.”

Readers' comments (1)

  • Eric Musgrave

    Probably British Land was so against House of Fraser dumping stores because they included the 10-15 stores covered by a BL-HoF joint venture called BL Fraser, which was set up in 1999. The details of it can be seen here
    The JV was still in place in 2009 when I interviewed then HoF chairman Don McCarthy for Property Week. The feature can be read and here
    Don was very open about the problems with negotiating with landlords.
    Does anyone know when the JV was dissolved, or if it is still in place?

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