House of Fraser has cancelled all online orders and will refund customers after a dispute with its warehouse operator.
The department store took its website down on Wednesday due to the warehouse operator “paused” processing orders following a dispute over payment.
“Due to delays with delivering online orders, we have taken the decision to cancel and refund all orders that have not already been sent to customers. All customers affected will receive an email in the next couple of days. Please accept our apologies for any inconvenience caused,” House of Fraser tweeted.
XPO is just one of 1,000 suppliers to the department store that will not be paid anything it was owed before August 10, when Mike Ashley bought House of Fraser in a £90 million deal.
A source close to Sports Direct said it was dealing with suppliers on a case by case basis.
“XPO is unwilling or unable to get involved with us and that’s hampering our progress and impacting customers’ deliveries … and potentially putting at risk the rescue operation,” said the source.
According to reports, fashion brands including Jigsaw, Mint Velvet and Karen Millen have removed stock from the department stores. Ownership of these brands was not included in Sports Direct’s (LON: SPD) purchase.
Sports Direct is not legally obliged to pay anything House of Fraser owed before August 10, however
Businessman Philip Day, who also wanted to buy House of Fraser, has said Ashley should pay suppliers the £70 million they are owed “in full”.
Ashley has vowed to keep open most of the 59 department stores. He has plans to turn them into the “Harrods of the high street”.
