The home of the parent group Fraser swung to about £44 million of losses last year in anticipation of the sale of 51% stake in the Chinese owner of the Hamleys for £140 million.
Documents filed on the Hong Kong stock exchange on Thursday S. banner show that the house of Fraser group, which includes two Chinese outlets of the Department store chain, fell from £1.5 m pre-tax profit in 2016, to £43.9 m loss last year.
This figure includes the initial costs of the launch of shops in Nanjing, Xuzhou, and fees paid in the UK to use the house of Fraser name abroad. Separate annual financial statements for house of Fraser in the UK, expected to be released in the near future.
But the information submitted C. banner, who owns the Sundance and Mio shoes brands in China, and Hamley, also showed that house sales Fraser declined by 6.3% to £787.8 m amid tough market in the UK.
Quick guide trouble on the streets of the UK
In a workshop, toys R us and Jacques Vert all collapsed in recent weeks, but many shops and restaurant groups are facing financial problems and are trying to close stores or to agree to take cuts.
KAU: the owner of the Gaucho Steakhouse group is considering the closure of all 22 Cau restaurants, with the loss of 750 jobs. This can be done through the form of bankruptcy proceedings known as voluntary agreement (CVA).
House of Fraser: in the shops it is planned to close about 20 of the 60 points through CVA. He’s already tried to offload 30% of its space by reducing stores. In may, it published an annual loss of £44m.
New look: the fashion chain suffered a stroke in March, in order to reduce rents and to close 60 stores, with the loss of almost 1,000 jobs. Reduction of rent – 363 stores – from 15 to 55%.
Byron: the problem of elite Burger chain is reduced to 20 of 67 restaurants after the cva was agreed in January. The reduction in rent was agreed in several other places.
The website carpetright: the retailer suffered a stroke in April to close its 92 409 UK stores in September, with the loss of about 300 jobs.
Jamie’s Italian: the chain closed six stores in 2017, and this year agreed to a CVA to close about a third of its 35 unprofitable branches.
Poundworlddiscount retailer plans to close about 100 of its 355 stores, with the loss of around 1,500 jobs.
Off-road vehicle / pickup: in March, Italian-themed restaurant group secured CVA to exit 94 of 300 restaurants, with the loss of 500 jobs. The closures should be completed by the end of may. The reduction in rent was agreed for another 57 seats.
Of Debenhams: under pressure Department store chain wants to get rid of the space 30 of the 165 stores by bringing in gyms and other services.
Kit: chain plans to close a third of its 143 outlets. He negotiates with banks to provide new funding and is rumored to be considering a cva for the accelerated closure of the store.
Contacts: DIY chain is negotiating with potential buyers, and is also considered considering a CVA after a failed takeover of Australia Bunnings.
Photo: Jill Mead
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C. banner announced to investors it had agreed to buy a 51% stake in house of Fraser “strengthening the company’s presence in the retail market [China], as well as promoting the company to lay a good Foundation for a new brand and retail “road map” abroad”.
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He said that the deal will reduce costs and benefits by combining S. banner store hamleys and house of Fraser. He plans to form a Council of experts from each business to assess how they can work together.
The acquisition is structured through the purchase of 34% stake from the current owner, Nanjing Cenbest, part of Chinese conglomerate Sanpower, in a $ 71m and then the purchase of a £69m in new shares. The ad shows the full amount paid S. banner for the first time.
The deal refers to the home of the parent group Fraser, which owns 89% stake in the UK business, with sports direct holding 11% shares. Sports direct has expressed concern about events taking legal action for more information on the business plan of the company, including large-scale restructuring.
The transaction is subject to the approval of bondholders and shareholders and the completion of the restructuring, in which about 20 stores are expected to close.