House of Fraser plunges into crisis as rescue deal falls through

The future of House of Fraser continues to look bleak as its potential new owner walks away from the rescue deal.

C.banner, which owns the toy store Hamley’s, had planned to buy a 51% stake in House of Fraser and inject £70m into the business.

However, the Chinese firm said it would no longer proceed with its investment because its share price has fallen dramatically.

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House of Fraser has previously described the restructuring proposal and investment from C.banner as the last viable option for the business, but as it ploughs into crisis the department store has said it is in discussions with alternative investors and is “exploring options to obtain the required investment” during the same timeline.

The rescue deal with C.banner was conditioned on the struggling department store closing 31 of its 59 stores, including its flagship on Oxford Street.

It is estimated 6,000 jobs would have been lost.

House of Fraser agreed a controversial restructuring deal with its landlords in June to cut stores and save money, but a legal challenge contesting the process has since been made by landlords.

Press are already rumouring new deals are on the table, but nothing new has yet been confirmed.

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