House of Fraser cuts stores and jobs as Poundworld seeks lifeline

More than 10,000 jobs are at risk on the high street after House of Fraser said it would close 31 stores and Poundworld fought to stave off administration. In a shocking day for the retail industry, House of Fraser, the department store that dates back to 1849, said it “had no alternative” but to close 31 of its 59 stores and cut rents on a further ten in order to avoid collapse. Alex Williamson, the chief executive of House of Fraser, said he was aware of the “brutality” of his decision, which had put 6,000 jobs at risk, but added: “Without this restructuring House of Fraser is not viable . . . Our property portfolio dates back many, many decades and it is extremely inflexible and creates an unsustainable cost base. Analysts warned that traditional high street retailing had reached a “tipping point” as the struggling department store chain cast doubt over 6,000 jobs through plans to axe more than half its stores according to the Telegraph. The FT said the setbacks are the latest in a series of blows for UK retailers, many of which are trapped in long store leases and have been hurt by rising wage costs and local taxes, more cautious consumers and a growing shift to online shopping. Fashion retailer New Look, babycare specialist Mothercare and floor coverings group Carpetright are all in CVA processes, while Marks and Spencer recently outlined plans to close more than 100 stores by 2021. Click here for the full Times article (£) Click here for a Times retail analysis article (£) Click here for the full Telegraph article Click here for the full Guardian article Click here for the full FT article (£)