7 665
Fashion Jobs
Feb 12, 2018
Download the article
Click here to print
Text size
aA+ aA-

House of Fraser seeking to refinance part of £390m debt

Feb 12, 2018

Struggling department store chain House of Fraser has appointed Rothschild to advice on refinancing part of its £390m debt package amid concerns about the financial health of the British company.

House of Fraser/Maison de Nimes

House of Fraser is looking to refinance £225m of its £390m debt, maturing in July 2019, reported the Daily Telegraph. The remaining £165m matures a year later.

Despite continued efforts from its Chinese owner Sanpower to keep House of Fraser afloat, the company has been struggling to grow its revenues in the face of growing competition from online retailers.

During the important Christmas period, sales fell by 4% at the department store after deciding to reduce the level of online discounting to protect its margins. Sanpower had pumped £25m into the business in September.

In December, rating agency Moody’s downgraded the company’s credit rating a “very high credit risk”, and this month, a credit insurer decided to stop offering insurance cover to some of House of Fraser’s suppliers, including Ted Baker.

House of Fraser’s publicly traded bond has fallen by 6.6% over the last month.

Copyright © 2022 FashionNetwork.com All rights reserved.