cva, com pa ny volu nta ry that then decides whether this cva, company voluntary arrangement, will goteeth of some objections from many of the landlords, who say they haven't got afair landlords, who say they haven't got a fair crack of the whip because they have a fixed asset, where suppliers, that unsecured creditors, don't have as much credit worthiness asa don't have as much credit worthiness as a landlord does. what does it mean for landlords? you raise a very valid point. cvas are relatively new procedures. it is a form of insolvency. designed to prevent full—scale administration, when potentially the whole business would shut down like we have seen with toys " r" shut down like we have seen with toys "r" us this year, and a way of keeping the business on its toes. but landlords are complaining they are being outvoted and outmuscled by these unsecured creditors, such as these unsecured creditors, such as these suppliers. so i have a feeling day, when the next big cva happens, and we don't know what retailer may face that, they may say no, we're not even going to start talking ab

just explain to me what is a cva?credit risk when that company has become insolvent. the principle behind it is that they come to an agreement with bondholders, banks, or indeed with their landlords, and the manage the amounts over the period of time. the problem that we are seeing in our organisation —— and our organisation represents property owners, is that this tool is being used to unfairly disadvantage one particular group which is owners of retail property. basically a company like house of fraser might get cheaper rents for a while, and you're saying that is unfairon the while, and you're saying that is unfair on the landlords, but a lot of people say that these rents in these high streets have been pretty extortionate for a long time, i'm simply too high. helping to put a lot of businesses out of business? what we are saying is that the process is not being used in the way that it was originally intended, which was as a process that treats all creditor groups in the same way. all creditor groups... clearly we

but then decides whether this cva is going to go ahead or not.t got the nod today that in the teeth of some objections from many of the landlords hughes said that they haven't had a fair crack of the whip because they have a fixed asset were suppliers, there is an unsecured creditor. not as much creditworthiness as a landlord would have. what does this mean essentially? this is a valid point because cva are relatively new procedure. it is a form of insolvency, designed to prevent full—scale administration and with potential the whole business being shut down as we saw with maplin. but landlords are being, they feel, being muscled out by the suppliers. i have a feeling that when the next big cva happens we don't know what retailer might face that, they might even say that we're not even going to start talking about cva once we have some sort of clarity that we will not be outvoted or outmuscled. bring it back to house of fraser, this deal was going to close more than half of its stores. is it enough to ensure the health of the remaining part of th

you raise a very valid point because cvas, these company volu nta ry point because cvas, these companyively new procedures. it is a form of insolvency. it's designed to prevent full—scale administration, in which potentially be whole business would shut down like we saw with toys "r" us this year, and finding another way to keep the business on its toes, on its feet. that is what it's arranged but landlords are complaining they are being outvoted and outmuscled by these unsecured creditors, such as these unsecured creditors, such as these suppliers. so i have a feeling that day, when the next big cva happens and we don't know which we tell about wilby, they might say no, we re tell about wilby, they might say no, were not even going to start talking about cvas and we have some sort of guarantees we won't be outvoted or outmuscled. bringing it back to house of fraser, this deal will close more than half of its stores. is it enough to ensure the health of the remaining parts of the business? to quote donald rumsfeld, it is the known and unknown. the national minimum wage is going up, the

, a company volu nta ry process known as a cva, a company voluntary arrangement.at is what they have got. that now means that the rescue plan will go ahead. a pretty brutal rescue plan. it involves the loss of 6000 jobs. a pretty brutal rescue plan. it involves the loss of 6000 jobsm is. very dramatic. but the alternative was a business that was on the brink of collapse. it has been losing money and sales for quite a long time. the company said, yes, it is a very difficult thing to do. it is terrible for the staff involved, but this is a necessary step in order to protect the long—term future of the business. look at the time what are we looking at? they announced store closures that would take effect by the early 2019 and rent cuts more immediate. it will take some time for the changes to go through. crucially, they got the approval today. thank you very much. you're watching afternoon live, these are our headlines... airbus threatens to pull out of the uk — if britain crashes out of the eu without a deal. from harley davidsons to jeans — the eu slaps import tari

they area amount to lose in a single cva. they are a much smaller group.ns over there are still major questions over the viability of house of fraser going forward, particularly given the ownership structure and the store performance is really quite an opaque picture at the moment. 0k, we're going to have to leave it there. dan simmons, many thanks for your time. time for a look of the weather, tomasz schafernaker. is not going to be too hot this weekend, lots of sunshine on the way. the north of the country is a bit more cloudy. this is the satellite image from the last 12 hours also want to write a bit more cloud across the north but for many of us clear skies and once again to bridges will take a bit of a dip full stop it won't be as chilly as this morning. i think temperatures in towns and cities will be around 8-10 in towns and cities will be around 8—10 for most of us. it starts off sunny and pleasant fresh weather out there. through the course of the afternoon perhaps a little bit of light rain or drizzle in the very far north—west of scotland. othe

a cva is the preferred option. landlords do seem to take the hit.at with? landlords are saying they didn‘t sign up to that, they signed up to a long lease, they possibly gave house of fraser capital contributions towards fit out at the very beginning and landlords use the money from the rent too often fund pension funds, so your pension fund and mine are affected by this. they are really saying that lost revenue will impact very heavily. 0n the counter ‘s side, house of fraser saying they have paid upward only rent, so their leases don‘t allow that to reduce the rent and they have paid a long time and they simply cannot afford to pay that rent on stores and continue to trade. there are two dinners to the story. it seems like a bit ofa dinners to the story. it seems like a bit of a mess, doesn‘t it? where does this leave management? will management stay on board to try to change things or will there be changes at the top? the issue of management is interesting. it‘s very important. it‘s always difficult in retail with management. the management who a

retailers like next, if they are signing a lease today, are putting in with the landlord a kind of next —— cvau sign a new clause with a retailer on this site, we wa nt clause with a retailer on this site, we want the same discounted rates. richard, thank you. you're watching business live — our top story — some of america's closest allies have reacted furiously to president trump's decision to slap steep tariffs on steel and aluminium imports. the us says it is a matter of national security, while the countries affected — including canada, mexico and the eu, have promised to retaliate. it's been a busy week for the eurozone — we've had italy's political crisis, which spooked markets as it initially looked like there could be fresh elections. and as we've mentioned, later today the spanish prime minister mariano rajoy is facing a vote of no—confidence later today. with me is our economics correspondent andrew walker. let's start on the tariffs. interestingly, wilbur ross is heading out to beijing to try and sort out china. that is the big cheese, isn't it? it is. and in relation to the steel a

so we find ourselves 110w months or so so we find ourselves now at a point where we are proposing a cvaroved by our creditors will [and us in a position where we have a viable opportunity to go forward. it is necessary today because without it we are not a business with the viable future. how manyjobs will go if this deal goes through? so the announcement today will affect in the region of 6000 people. the challenges that creates all the people in our stores, there are 2000 house of fraser colleagues and about 4000 that come with our brand partners. it's not missed en masse. it's an extraordinary day. with deep challenges for many people and our focus as a management team is on making sure we deliver these m essa 9 es is on making sure we deliver these messages appropriately and show the appropriate levels of support. messages appropriately and show the appropriate levels of supportlj wa nt appropriate levels of supportlj want to ask you a bit more about the challenges, how many of these stores are losing money? you talked about the property portfolio being unsustainable, explain that.

new look is one of many retailers that struck a company voluntary agreement, or cva, this year, givings. as we've been hearing, unemployment in the three months to april fell by 38,000 to 1.42 million people, according to official figures out today from the office for national statistics. but it's not all good news. wage growth unexpectedly slipped over the same period, from 2.9% to 2.8%. wage growth is one of the key figures the bank of england monitors to assess the health of the uk economy. economists believe this slight decline in wage growth means an interest rate rise in august is now less likely. usually, when unemployment is at record lows, firms have to fight to attract whatever spare labour is left and offering higher wages is one way to do it. but that doesn't seem to be happening. earlier, we asked yael selfin, chief economist at kpmg in the uk, why falling unemployment isn't translating into higher wages. we are seeing a relatively strong labour market overall, and we're seeing an increase in vacancies across the board, really. so the issue's not so much with the labour ma

it is a legit and use of the cva process to downsize its estate.g investment which is something that you put your money down first and hope for a delivery later. if customers hear that carpetright is in trouble or going through a rocky period, they may be more reluctant to put that money down up front for a big purchase. you have seen their sales drop a lot in 2018, since the announcement of the cva, that shows what an effect that can have. thank you. a quick look at markets. the ftse recovering from yesterday. carpetright getting punishment from investors, and substantially today. carnival is doing well today, the cruise company coming back from losses. the commodities market is looking stronger, which is why we're seeing anglo—american going back up in price. thank you. the met office has issued a yellow weather warning, because of the high temperatures hitting much of the country. yesterday the thermometer topped 30 celsius in the capital, and similar is expected today. network rail has introduced speed restrictions, because of concerns that the

new look is one of many retailers that struck a company voluntary agreement or cva this year — whichdrunk potential passengers might be. the app used to summon rides could also feed other information to the driver, including a passenger's location, how accurately they are typing and even the angle they are holding their phone at. it could help drivers who do not want to pick up inebriated riders. but critics said it could also be used to identify vulnerable passengers. it may have hit the headlines but the historic meeting between us president donald trump and north korean leader kimjong—un, has really had little impact on the financial markets. the ftse in london, the german dax and the cac in france are all trading down this afternoon despite the fact the us president donald trump says his talks with north korean leader that ended in a joint agreement, were "tremendous". chairman kim has told me north korea is already destroying a major missile engine testing site. that is not in your signed document, we agreed to that after the agreement was signed. it is a big thing. let's go str

closures including the flagship oxford street store, as pa rt flagship oxford street store, as part of a cva rand and concession worms. the store will stay open until 2019. this is what the boss had to say about this. this is brutal, this is as tough as it gets, and we have not taken this decision lightly. it is very dramatic for people that we care about a great deal. i find it personally very emotional and i am not making this decision based on anything other than what i consider to be absolutely the best option for house of fraser and all of our stakeholders. but most importantly, to bring forward as many of our colleagues with us into the future. mentioned london's 0xford mentioned london's oxford street, its flagship store? yes, and probably the most expensive to run. the company says it is facing a tsunami of challenges. 0bviously the company says it is facing a tsunami of challenges. obviously the likes of amazon, and footfall has fallen dramatically. every month since april 2000 16. you can see, people are going to bricks and mortar stores so much and also they have a very expensive

what the mothercare news highlights is to get one of these cvas to work you need your creditors to agreews. who knows, we will talk about it in more detailto my. thank you very much for that. at least 38 people have died and around 2 million are affected after one of latin america‘s most active volcanos erupted suddenly. at least one village near the fuego volcano in guatemala has been buried in ash and lava, and the main airport in guatemala city has been closed. el fuego is one of latin america‘s most active volcanoes, but sunday‘s eruption was the deadliest in more than a century. ash billowed thousands of metres into the sky. the explosion forced rivers of lava and mud down to the communities below. those that could fled for their lives. emergency workers urged everyone in these villages to evacuate. these people are used to living in the shadow of el fuego, but this was a close call. many in this village were injured and had to be taken to hospital. but for some it was already too late, their homes smothered in a thick layer of mud that had raced down the volcano at terrifying speed