Jobs and stores at risk as House of Fraser eyes CVA

House of Fraser is looking at options for accelerating a restructuring initiative, threatening hundreds of jobs and fuelling expectations of store closures.

According to a report by Sky News, KPMG has been asked by the department store chain, which is controlled by China's Sanpower Group, to explore the possibility of a Company Voluntary Arrangement (CVA), months after it informally asked store landlords to agree to big rent cuts. 

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“The news of KPMG's appointment, which is understood to have been signed off in recent days, will fuel expectations that a substantial number of HoF's 59 outlets across the UK are facing the axe,” says Sky News. “Sources close to the company said it was not certain that HoF and its shareholders would pursue a CVA but conceded that one was a possibility.”