The Chinese company behind House of Fraser will inject about £15m into the department store chain this week as part of a plan to allay concerns about the 169-year-old firm’s financial health.
The retailer, which employs 6,000 people, has been under the spotlight over fears it could become the next victim of torrid trading conditions for the UK retail sector that have already claimed well-known high street names such as Toys R Us and Maplin this year.
It is trying to slash the floorspace of its 59-strong store chain by 30% and reduce its rent bill after dismal Christmas trading figures, while its bank lenders have hired accountancy EY to review the firm’s finances.
