LONDON, United Kingdom — Creditors of House of Fraser approved the struggling British department store group's survival plan at meetings on Friday, the retailer said in a statement.
Earlier this month, the Chinese-owned retailer said it would seek creditor approval for Company Voluntary Arrangements (CVA) that would see 31 of its 59 stores close early next year and the potential loss of 6,000 jobs.
The 169-year House of Fraser needed the CVA to go through to secure new capital from Chinese retailer C.banner.
Last month C.banner agreed to become House of Fraser's majority owner with a 51 percent stake, with Nanjing Cenbest retaining a minority holding. Nanjing Cenbest had paid 480 million pounds ($638 million) for an 89 percent stake in 2014.
“The approval of the CVAs is a seminal moment in House of Fraser’s history," said chairman Frank Slevin.
"We must now continue with the implementation of our restructuring plan. This is also an important milestone in the transaction with C.banner and moves us toward the completion of the capital injection first announced in May.”
A CVA, which allows firms to avoid insolvency or administration, has also been taken this year by fellow UK retail strugglers - fashion chain New Look, floor coverings group Carpetright and mother-and-baby goods retailer Mothercare.
By James Davey; editors: Stephen Addison, Elisabeth O'Leary