House of Fraser’s lenders have agreed to extend its loans, giving it more time to get its restructuring proposals in order.
The agreement is conditional on the retailer’s proposed company voluntary arrangement (CVA) being voted through by creditors on Friday and on a £70m cash injection promised by prospective new owner C Banner, which owns Hamleys, according to the Press Association.
House of Fraser has a £125m term loan and a £100m revolving credit facility with principal lenders HSBC and Industrial and Commercial Bank of China. The loans originally matured in July 2019. It is unclear how much more time the extension grants House of Fraser.
House of Fraser became the latest retailer to launch a CVA in May, when it revealed plans to strip costs out of the business and secure a new shareholder.
It is seeking to close 30 of its 59 stores including its Oxford Street flagship, which will result in the loss of 6,000 jobs.