C.banner, the Hong Kong-listed owner of Hamleys, was unable to raise the £150m it needed to invest in House of Fraser due to a dive in its share prices. House of Fraser is urgently seeking £50m to avoid it going into administration. If the company falls into administration it would put 17,500 jobs at risk.
Dave Gill, Usdaw National Officer, says:
"This news will decimate the hopes of thousands of staff who have been facing an uncertain future ever since the company announced it would close 31 of its 59 stores earlier in the year. House of Fraser is an iconic brand and it will be devastating for everyone involved if it goes in to administration.
"Although House of Fraser does not recognise Usdaw, I am urging the company to engage in talks with us so that we can work together to save jobs.
"In the meantime, Usdaw is providing the support and advice our members require at this very difficult time and we are urging the company to ensure all staff are treated with dignity and are fully consulted."
Notes for editors:
Usdaw (Union of Shop, Distributive and Allied Workers)
is the UK's fifth biggest and the fastest growing trade union with around 430,000 members. Membership has increased by more than 28% over the decade. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemicals and other trades.
For Usdaw press releases visit: http://www.usdaw.org.uk/news
and you can follow us on Twitter @UsdawUnion