House of Fraser is facing further pressure after a key supplier pulled brands from stores.
The Edinburgh Woollen Mill (EWM) group, which owns the Jacques Vert, Jane Norman and Jaeger brands, and also manufactures men’s suiting for the retailer’s Linea label, began withdrawing its stock on Wednesday.
A spokesman for the group said: “This decision was not taken lightly and follows a period of extended and sustained negotiations with House of Fraser.
“Our brands have a long history with House of Fraser and we worked hard to try to secure a satisfactory arrangement. But sadly we have not been able to agree future trading terms that give us confidence in the security and continuity of the House of Fraser business.”
Maplin, Toys R Us and Jacques Vert have all collapsed in recent months, but several retailers and restaurant groups are facing financial problems and are trying to close stores or negotiate rent cuts.
Gourmet Burger Kitchen: The upmarket burger chain wants to close 17 of its 85 restaurants via an insolvency process known as a company voluntary arrangement (CVA)
House of Fraser: The department store chain is expected to close about 12 stores after being bought out of administration by Mike Ashley. It had agreed a CVA under which 31 stores were to close, but this lapsed on administration.
Homebase: The DIY chain is closing at least 42 stores after completing a CVA organised by new owner Hilco. The restructuring expert bought the DIY chain for £1 from Australia's Wesfarmers who botched an attempt to bring its Bunnings chain to the UK.
Poundworld: The discount retailer has closed all its 355 stores, with the loss of 5,100 jobs after falling into administration in June.
Cau: The owner of the Gaucho and Cau steakhouses fell into administration in July leading to the closure of all 22 Cau restaurants, with loss of 750 jobs. The groups lenders have since bought the 16 Gaucho outlets.
Mothercare: The chain is closing 60 of its 137 outlets after agreeing a CVA in May. Additional closures in July mean 900 jobs will be lost.
Carluccio's: The Italian chain secured a CVA to close 30 of its 99 restaurants in late May.
New Look: The chain is closing 85 stores in a restructuring plan announced earlier this year. Its chairman, Alistair McGeorge, said the future of a further 39 stores was in doubt as talks with landlords continued.
Carpetright: The retailer obtained a CVA in April to close 92 of its 409 UK stores in September with the loss of about 300 jobs.
Prezzo: In March the Italian-themed restaurant group secured a CVA to close 94 of its 300 restaurants, with the loss of 500 jobs. Rent cuts were agreed on a further 57 locations.
Jamie’s Italian: The chain closed six locations in 2017 and this year agreed a CVA to close about a third of its 35 loss-making outlets.
Byron: The upmarket burger chain is closing up to 20 of its 67 restaurants after a CVA agreed in January.
Debenhams: The under-pressure department store chain has said it could close up to 50 of its 165 stores stores and wants to get rid of space at 30 more by bringing in gyms and other services.
M&S: The high street stalwart wants to close 100 outlets – a third of its main stores by 2022 as part of a 'radical transformation' plan.
The exit of EWM’s brands, which had concessions in 35 stores, comes as House of Fraser battles to secure stock distribution to its stores and to online shoppers after a dispute with XPO, the company which runs its two warehouses. More than 600 workers at theMilton Keynes and Wellingborough sites have been told their jobs are likely to go.
House of Fraser’s website remained closed on Wednesday, three weeks after it was shutdown because XPO refused to process goods without payment for services in the run-up to a takeover of the department store chain by the Mike Ashley’s Sports Direct group nearly a month ago. Administrators for House of Fraser have indicated XPO is owed more than £30m, although it is understood that the actual figure could be less than half that.
XPO is the biggest loser among more than 1,000 suppliers which will not receive any money from the administrator EY, which was called in before of the sale of the retailer to Sports Direct for £90m.
Philip Day, who owns EWM and fought Ashley for ownership of House of Fraser, was owed nearly £3m. But it is understood that EWM’s exit is not linked to this debt.
A spokesman for EWM said: “We remain firmly open to discussions with House of Fraser, and hope they will engage with us. We have also received a firm guarantee from the top management of Sports Direct that all sales since the takeover will be paid in full on 10 September, and anticipate that that guarantee will be honoured.”
