House of Fraser department store in Edinburgh to close
The firm will also relocate its Stockwell Street office in Glasgow under rescue plans.
House of Fraser is to shut its department store in Edinburgh's Princes Street early next year, putting 127 jobs at risk.
It is one of 31 store closures planned across the company's 59 outlets in the UK as part of a rescue package.
The retailer will also relocate its Granite House office in Stockwell Street, Glasgow, and its head office in London's Baker Street to cheaper new locations under the proposals.
The Jenners store on Princes Street, also owned by House of Fraser, will not be affected by the restructuring plans.
Scotland's two other House of Fraser stores, in Loch Lomond and Glasgow, have not been earmarked for closure.
A total of 127 workers are based at the Princes Street store, either directly employed by House of Fraser or through brands and concessions, and all of their jobs are at risk.
The store closures will be undertaken through a Company Voluntary Agreement (CVA), a controversial insolvency procedure in vogue among struggling retailers.
Around 2000 House of Fraser staff and a further 4000 workers across brands and concessions throughout the UK could be impacted by the plans.
The firm said it has already been in touch with the affected staff.
The CVA requires approval from creditors who will make their decision on June 22.
House of Fraser said it expects stores that are scheduled for closure to remain open until early 2019.
Chairman Frank Slevin said: "The retail industry is undergoing fundamental change and House of Fraser urgently needs to adapt to this fast-changing landscape in order to give it a future and allow it to thrive.
"Our legacy store estate has created an unsustainable cost base, which without restructuring, presents an existential threat to the business.
"So whilst closing stores is a very difficult decision, especially given the length of relationship House of Fraser has with all its locations, there should be no doubt that it is absolutely necessary if we are to continue to trade and be competitive."
The 170-year-old retail giant began with a single drapery shop in Glasgow run by Hugh Fraser and James Arthur in 1849.
It grew steadily, becoming House of Fraser in 1941, then took hold as a national chain after the Second World War.
The firm was bought by Chinese conglomerate Sanpower Group for £480m in 2014.