UK House of Fraser's rocky road
According to Reuters, House of Fraser will need to close some of its stores as a condition of securing new funds from international retailer C.banner, which will become the majority owner of the department stores group with a 51 percent stake. House of Fraser said it would launch a Company Voluntary Agreement (CVA) next month to allow it to restructure its store portfolio. The company was founded in 1849 and it operates close to 60 stores in Britain and Ireland. Under UK’s CVA, as long as 75% (by debt value) of the creditors vote for the CVA, then it binds all of the company's creditors irrespective of whether or not they voted for the deal. Creditors are also unable to take further legal action.