STRUGGLING British department store group House of Fraser sank deeper into debt yesterday and announced a radical cost cutting drive that could mean job cuts and up to 10 store closures.
The group made a loss before tax and exceptional costs of £13.6 million sterling, against a loss last time of £4.3 million. Sales rose to £334.7 million from £322.6 million. The dividend was held at 1.7p a share.
The retailer, beset by problems since its flotation in 1994, said a wide ranging review of operations by its new chief executive, Mr John Coleman, suggested between five and 10 of its 51 stores might be sold or closed over the longer term.
The company estimated it would need to make provisions of between £40 and £50 million in its full year accounts to pay for possible store closures, job cuts and the writedown of inappropriate stock lines.
"On the very prudent side, at this stage, it's probably going to be between £40 and £50 million... It's a very conservative figure," finance director, Mr Richard Scott said.
He declined to give any details on which stores might close or the likely number of job cuts. The group is also looking to save money by reducing head office costs and introducing a cheaper refurbishment programme.
