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Fossil Group's British business challenged by department store closures

10 June 2018

But it's not clear whether the store, which is the anchor retailer at the city's Victoria Square Shopping Centre, will be subject to a rent reduction as part of a new company voluntary arrangement.

Once approved, 2,000 direct jobs and 4,000 brand and concession roles will be at risk. Creditors are expected to vote on this proposal on 22 June.

The largest House of Fraser to close is on London's Oxford Street, where it occupies one of the most valuable retail locations in the country and is one of the most iconic stores on Britain's busiest thoroughfares.

The department store was one of the first to snap up Swarovski Group brands Adore and Karl Lagerfeld, both of which have reportedstrong sales to date, while the retailer recently began selling fashion brand Lily and Rose, which has got off to a positive start in its stores and online.

Fossil Group declined to comment on the impact of the House of Fraser closures, which will see stores shuttered in Altrincham, Aylesbury, Birkenhead, Birmingham, Bournemouth, Camberley, Cardiff, Carlisle, Chichester, Cirencester, Cwmbran, Darlington, Doncaster, Edinburgh Frasers, Epsom, Grimsby, High Wycombe, Hull, Leamington Spa, Lincoln, London Oxford Street, London King William Street, Middlesbrough, Milton Keynes, Plymouth, Shrewsbury, Skipton, Swindon, Telford, Wolverhampton and Worcester. Giants like Toys R Us and Maplin shut this year, DIY store Homebase sold for a mere 1 pound this month, and in April supermarket chain Marks and Spencer revealed plans to close 100 shops by 2022.

"So whilst closing stores is a very hard decision, especially given the length of relationship House of Fraser has with all its locations, there should be no doubt that it is absolutely necessary if we are to continue to trade and be competitive".

He also stated the retail industry is going through fundamental change and the company urgently needs to adapt to this fast-changing landscape in order to give it a future and allow it to thrive. A condition of the deal was that House of Fraser agreed to sort out its debt problems.

Fossil Group's British business challenged by department store closures