House of Fraser has confirmed plans to close 31 of its stores, including London flagships on Oxford Street in the West End and King William Street in the City.
The struggling Chinese-owned department store chain, which has 56 stores and two outlets in the UK and Ireland, plans to close them as part of a company voluntary arrangement (CVA) scheme.
READ: CVAs explained: What is a company voluntary arrangement?
The move is part of a plan for the firm to secure new funding, which would see its current majority shareholder, Chinese firm Sanpower, transfer its 89% holding to another China-based firm C.banner, which owns toy retailer Hamley's.
Sports Direct PLC (LON:SPD) boss Mike Ashley, who complained earlier this year of being "shut out" of House of Fraser by Sanpower, owns the remaining 11% of the group.
C.banner has promised an injection of cash into the firm on the condition of the CVA going ahead.
Earlier this week, House of Fraser was forced to deny speculation it was on the brink of collapse, calling it "inaccurate and unhelpful" to suggest it was clambering to secure support from its lenders.
The stores group currently employs 6,000 people, with at least a further 11,000 working concessions within its departments.
House of Fraser is the latest chain to exit the UK high streets following the collapse of electronics retailer Maplin and toy stores Toys R Us earlier in the year.
Neil Wilson, chief market analyst at Markets.com commented: “Further store closures further weaken the high street and this starts to become self-fulfilling. The fewer stores to draw people in, the more footfall suffers.”
He added; “Struggling retailers may also find it much harder to secure CVAs in future as landlords seem to have said enough is enough. Debenhams and M&S are both lower this morning."