HoF announces enormous losses

British department store group House of Fraser has announced losses before tax have almost trebled from £1.2 million in the first half of 2004 to £3.1 million in the same period of this year. The group said the losses were due to the "extremely difficult" trading environment.

It added that were it to eliminate the one-off benefit from property gains of £1.3 million, the chain's total losses amounted to £4.4 million.

Having famously sold Dickens & Jones on Regent Street in June and Barkers on Kensington High Street in August, the chain has said that it will continue to open stores, focusing on shopping centres with convenient parking facilities. It has also opened stores in Dublin, Maidstone and Norwich and has also acquired department stores Jenners in Edinburgh and James Beattie in the Midlands.

"We have made a great deal of progress in the period despite an extremely difficult trading environment," said chief executive John Coleman, adding that the new acquisitions, tightened financial management and focus on branded products "ensured the group is well positioned for the all-important Christmas period."