House of Fraser has taken the first steps to begin a refinance of its debt package with the appointment of Rothschild to act as an advisor.
According to The Telegraph, the department store chain has drafted in the investment bank to help refinance £225 million of its £390 million debt package, which will mature in July 2019.
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House of Fraser’s remaining £165 million publicly-traded bond matures in 2020.
The news follows growing concerns about the health of the retailer, owned by Chinese firm Sanpower, after a slump in Christmas sales and having its credit rating downgraded by Moody’s.
More recently, an unnamed credit insurer which covered around 20 of House of Fraser’s 650 suppliers opted to stop offering cover.
House of Fraser has also asked several of its landlords for rent reductions, prompting further questions about its financial health.
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