Bryan Cave Leighton Paisner (BCLP) is advising about a dozen landlords as they seek to challenge department store chain House of Fraser's plans to close more than half of its stores.

Last week, the high street retailer announced a proposed company voluntary arrangement (CVA) that would see the closure of more than half of its 59 stores and the loss of 6,000 jobs. The closures include House of Fraser's flagship Oxford Street branch.

Freshfields has been advising House of Fraser on the CVA negotiations, with US firm Kirkland & Ellis taking a role for the bondholders.

The restructuring will see C.banner, the owner of iconic toy store Hamleys, become the majority shareholder in the department store with a 51% stake. The Chinese company will also subscribe for new shares in House of Fraser to provide fresh capital. The CVA requires the approval of 75% of creditors for it to go ahead.

The growing ubiquity of CVAs has prompted questions from landlords about why they should lose rental income while other creditors in faltering businesses are relatively unharmed. However, retailers have suggested that unsustainable rent increases are partly to blame for the current crisis on the high street.

BCLP head of restructuring and insolvency Ben Jones said: "Any specific information about the clients Bryan Cave Leighton Paisner are advising on the CVA issue or otherwise is naturally highly confidential.

"BCLP remains active in reaching out to both landlords and tenants to understand more their concerns on CVAs, and is working with key stakeholders in the sector to air concerns and consider alternatives to the unproductive phoney war being waged through the media. Our aim is to identify a pathway which can help secure the long-term survival of viable businesses without landlords feeling they are the fall guy."

Separately, Sports Direct – which holds an 11% share in House of Fraser – has launched legal proceedings against the department store at the High Court, alleging that it was frozen out of negotiations over the proposed CVA.

House of Fraser is the latest in a long line of household name retailers forced to undergo restructuring during a tumultuous period for the high street.

Ashurst and Travers Smith are advising on Carpetright's restructuring, while Eversheds Sutherland has been acting on the administration of electronics retailer Maplin. Travers Smith and Ashurst are also acting alongside Addleshaw Goddard on the restructuring of restaurant chain Carluccio's, which is pushing forward with a CVA that could see the closure of about 30 branches.

US firm Kirkland took the lead role on the collapse of Toys R Us, advising on a CVA secured in December to keep the business running over the Christmas period, as well as the Chapter 11 bankruptcy of its US business last year. In March, Kirkland & Ellis restructuring partner Kon Asimacopoulos told Legal Week that he predicted "more CVAs this year than at any time in the past".

BCLP and Freshfields were contacted for comment.

Photo credit: James E Petts