THE closure of House of Fraser in Leamington is going ahead after creditors gave plans the green light.
Restructuring plans will see 31 of the company’s 59 stores close early next year.
Some 6,000 jobs are believed to be affected nationwide while in Leamington nearly 200 jobs will go.
The struggling store will undertake the closures through a Company Voluntary Arrangement, which will also allow it to secure rent reductions on its remaining shops.
Along with the arrangement, Hamleys owner C banner is being lined up to buy a 51 per cent stake and invest £70million in the business – which has been running for 169 years.
Department store chairman Frank Slevin said: “The approval of the CVAs is a seminal moment in House of Fraser’s history. 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.”
The store says it will support the colleagues affected by the closures.
Chief executive Alex Williamson said: “The CVA proposals have been approved by our creditors and we are grateful for their ongoing support and belief in the future of House of Fraser. This was clearly a difficult decision to take but is, ultimately, the only one to secure our future.
“Our focus is on supporting all of our affected colleagues and we are exploring every opportunity available to them.”
