British department store chain House of Fraser has received approval from its creditors for the company voluntary arrangement (CVA) proposals.
The CVA was filed on 6 June and the retailer plans to close around 31 stores in the country as part of its rescue plan.
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The retailer currently operates 59 department stores across the UK and Ireland, of which more than half will be closed, including its flagship store on Oxford Street in London.
House of Fraser will work with landlords and other stakeholders to implement the proposals as well as close the proposed stores.
House of Fraser chief executive officer 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.
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By GlobalData“Our focus is on supporting all of our affected colleagues and we are exploring every opportunity available to them working alongside the Retail Trust and the wider retail community.”
The agreement also covers restructuring efforts of the company such as securing its future and accessing new capital from Chinese retailer C.banner.
The restructuring efforts will offer a platform for the retailer’s future growth and allow it to have a more sustainable cost base.
According to the company, the stores are expected to be open until early next year.
