Doncaster House of Fraser store closure confirmed as creditors agree to shutdown

Doncaster's House of Fraser store.
Doncaster's House of Fraser store.

The closure of Doncaster's House of Fraser store has been officially confirmed after creditors approved plans.

The struggling firm today announced that the Company Voluntary Arrangement proposals filed earlier this month have now been approved by the companies’ creditors.

It means the store in Baxtergate will close in early 2019.

A statement said: "The restructuring which these CVAs enable is essential to both securing the company’s future and accessing new capital from international retailer C.banner.

"Following the restructuring House of Fraser will have a more sustainable cost base and a platform for future growth to deliver an improved customer proposition."

House of Fraser will now begin the process of working with landlords and other stakeholders to implement the proposals, including the 31 stores identified for closure.

All stores identified for closure are anticipated to trade until early 2019. Directors are "absolutely committed" to supporting all colleagues affected by the store closures.

Commenting on the result of the vote, Frank Slevin, Chairman of House of Fraser, 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.”

Alex Williamson, Chief Executive Officer of House of Fraser, said: “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.”

The Doncaster store - still known to many as Binns - became a retail outlet nearly ten years ago but has still struggling to compete in a changing shopping environment.