Crunch vote on future of House of Fraser taking place today

Creditors and landlords will be voting on a rescue deal that will see more that half of the chain's department stores closed by early next year, including the stores in Telford and Shrewsbury as well as Wolverhampton's 131-year-old Beatties store and its large shop in Birmingham city centre.

Up to 6,000 people will eventually lose their jobs. More than 200 of those staff are employed in Shropshire and more than 1,100 work at House of Fraser across the West Midlands.

However, if enough of landlords oppose the plan, it will almost certainly tip House of Fraser into immediate administration.

And that could mean store closures in weeks, or even days, with thousands on the dole at a time when many other high street chains are also closing stores and axing jobs.

While Beatties and House of Fraser's stores in Birmingham, Telford and Shrewsbury are almost certainly doomed, the rescue plan being voted on today gives the store chain the chance of sorting out a rescue.

What's at stake?

At stake is a CVA, or Company Voluntary Arrangement.

This is a kind of insolvency rescue that allows the company to get rid of 31 poorly performing stores, seek rent cuts on around 10 others and focus its energies on the remaining 28 branches, including shops at Sutton Coldfield and Solihull.

If the CVA gets the backing of at least 75 per cent of House of Frasers creditors and landlords, it will pass.

If that happens, the company's owners will be able to sell a controlling stake to Chinese company C.banner, which has promised to inject millions into the business. And deals struck with its banks will give House of Fraser additional breathing space over its loans and debts.

But many landlords are unhappy at being forced into a deal that will leave many of them seriously out of pocket.

House of Fraser has sold most of its properties over the years, including Beatties in Victoria Street, Wolverhampton.

Shortly after buying the Beatties group of 12 stores in 2005, House of Fraser sold the big city centre site for £47 million in a so-called 'sale and leaseback' deal, signing up to a 35-year lease.

Just 12 years later, the site's owner will be left with a building now worth considerably less than £47m. Many landlords will feel they having nothing to lose in voting against the CVA.