House of Fraser denies CVA talks in trouble

Struggling UK retailer House of Fraser on Monday has denied reports it was close to collapse as it sought to finalise a rescue deal.

House of Fraser is seeking a company voluntary arrangement (CVA) to offload loss-making sites and allow it to restructure its portfolio. Speculation over the weekend suggested the chain's Chinese owners were at loggerheads with lenders.

In a statement, the company said the speculation was "inaccurate and unhelpful".

House of Fraser has 59 stores in the UK and Ireland, more than 6,000 employees and 11,500 concession staff.

The restructuring plan is a condition for a multimillion-pound cash injection from C.banner, the Chinese owner of toy store Hamleys, which agreed to take a stake in the chain last year.