Following many weeks of conjecture, House of Fraser has confirmed that C Banner is to acquire a 51 per cent stake in the department store chain from its parent company Nanjing Cenbest. It is expected that the transaction will be completed early next month, subject to House of Fraser rationalising its store estate which will be achieved via a CVA. The extent of store closures and the impact on jobs has yet to be revealed.
House of Fraser chairman Frank Slevin said: “C Banner’s acquisition of 51 per cent of House of Fraser, together with the new capital and restructuring, represents a step to securing House of Fraser’s log-term future. With the support of Nanjing Cenbest and Sanpower, Alex Williamson and his team have made substantial progress on our transformation journey. However we need to go further and faster if we are to confront the seismic shifts in the retail industry.
“There is a need to create a leaner business that better serves the rapidly changing behaviours of a customer base which increasingly shops channels agnostically. House of Fraser’s future will depend on creating the right portfolio of stores that are the right size and in the right location.” He went on to add : C Banner’s investment is a vote of confidence in our prospects. We also know that if we are to deliver a sustainable, long-term business then we need to make difficult decisions about our under-performing legacy stores. I am all too aware that this creates uncertainty for my colleagues in the business and so we will be transparent with them throughout the process.”
C Banner owns Hamleys and is primarily focused on footwear in the Chinese market where it operates a number of retail brands.
Nanjing Xinjiekou is to retain a 38 per cent stake in House of Fraser with Mike Ashley controlling the remaining 11 per cent.
Share