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House of Fraser has agreed an undisclosed settlement with landlords who had threatened to thwart its Company Voluntary Arrangement (CVA), raising the chances of it successfully finding new investment.

 

Landlords of the department store retailer's properties at locations including Altrincham, High Wycombe and Birkenhead had challenged the CVA in the Scottish courts, believing it unfairly prejudiced them over other creditors.


House of Fraser said last night it had settled the litigation, lifting a major obstacle to the discussions it is having with potential investors. It is talking to prospective suitors after C. banner Holdings, which had been expected to invest, announced it was abandoning its plan last week (see related).


In a statement of their own, the landlord collective confirmed it had agreed to withdraw its legal challenge to the CVA but said the terms of the settlement remained confidential. House of Fraser will close 31 of its 59 stores as part of its CVA proposal.


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