Department store House of Fraser has denied reports that it is seeking crunch talks with lenders and reiterated its plans for a restructuring programme.

The company said it was pressing ahead with proposals for a company voluntary arrangement (CVA) – a way for companies to shed loss-making stores and cut their debts – which would pave the way for international retail group C.banner to buy a 51% stake in the business.

C.banner revealed in a statement to the Hong Kong stock exchange that it had secured the funding required for the deal.

House of Fraser chairman Frank Slevin said the plans were on track and constructive talks were taking place.

Alex Williamson, chief executive of House of Fraser, said: 'If we are to deliver a sustainable, long-term business supported by new liquidity then we need to make difficult decisions about our underperforming legacy stores.'