House of Fraser asks lenders for more cash after CVA approval - newspaper
Under pressure retailer House of Fraser has reportedly asked its lenders for an extra £50 million following the approval of its CVA plans on Friday.
The Mail on Sunday reported that the company has approached lenders for the extra money as part of the strategy that will see it closing 31 of its 59 stores. The newspaper said it sent letters to bondholders on Friday with the additional £50 million being described as “central to the ongoing significant restructuring of the business.”
The company also told bondholders that soon-to-be the majority owner C.banner would put “significant” funds into the business but that it wanted the loan facility that it could call on “in certain circumstances” in the future. It didn't say what those circumstances would be.
Earlier it had been reported that C.Banner would inject £70 million into the business once it take 51% control and that HoF had also got lenders to agree to extend existing credit facilities, putting it on a firmer fitting to imperilment its CVA.
While House of Fraser is just one of several UK retailers, including Mothercare and Carpetright, to resort to CVAs this year, HoF has created the biggest headlines due to the large proportion of its stores it plans to close and the anger of landlords over its strategy.
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