Press Association
Saturday 11th February 2012
Department store chain House of Fraser said it was ready for the next stage in its growth plans after securing an overhaul of its lending terms.
The group, which has 62 stores in the UK and Ireland, wrote to suppliers confirming it had successfully changed its banking agreements to allow it to ramp up expansion after seeing a recent surge in sales and earnings.
Same-store sales have leapt by more than 10% in the five weeks since the end of January, according to House of Fraser.
The group saw earnings rise by more than 20% in the year to January 31, thanks to a strong second half after focusing on more profitable in-house brands.
There had reportedly been concerns over news a month ago that it was seeking to relax its banking terms, while credit insurer Atradius had not reinstated cover for suppliers after withdrawing insurance around 18 months ago.
But in a letter to suppliers, House of Fraser chairman Don McCarthy assured that lending agreement changes would give it more room to grow.
He wrote: "House of Fraser has received overwhelming support from our lending group that will enable the group to move forward with the next phase of our growth strategy."
Expansion aims include moves to ramp up its online capabilities and in-house ranges, with the addition of labels such as Biba and Pied a Terre in womenswear, while continuing with an extensive store refurbishment programme.
It is also set to open its first store in the Middle East under a partnership with Retail Arabia International.
The inaugural outlet will launch in Abu Dhabi in 2012, with potential for others in Cairo, Riyadh, Jeddha, Dharan, Muscat and Doha.
