Sports Direct wrangles with House of Fraser suppliers

House of Fraser

House of Fraser has cancelled all orders placed online following reports of a dispute with employees at a key warehouse which supplies the company.

"All customers affected will receive an email about the cancellation and refund in the next couple of days".

We were all shocked to hear that the lovable House of Fraser could be closing its Dundrum doors.

"Please accept our apologies for any inconvenience caused and thank you from everyone at House of Fraser for your patience at this time". There had been an increased number of customer complaints regarding delayed deliveries since the takeover.

These problems have been exacerbated by a decision by warehouse operator XPO Logistics to temporarily close access to two warehouses dedicated to House of Fraser deliveries as it plays hardball in negotiations.

"Some of the biggest brands are in a "Mexican standoff" with Mike Ashley over debt, sources said". There is now no engagement, and no plans for any engagement, with no stock moving in or out of the warehouses, the source said.

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Sports Direct, after acquiring House of Fraser for £90m out of administration last Friday, revealed the decision to cancel online orders and offer refunds to all customers via Twitter overnight.

"However, these actions were unable to address the downturn in trading performance and the directors concluded that the business had reached a stage where it was no longer able to continue to meet its ongoing costs in its current format", the report said.

Sports Direct paid £90mln in cash to acquire "all of the United Kingdom stores of House of Fraser, the House of Fraser brand and all of the stock in the business" from accountancy firm E&Y acting as administrators.

According to The Guardian, fashion retailer Jigsaw has removed stock from 20 stores, and brands including Karen Millen and Mint Velvet are also understood to have withdrawn some stock.

House of Fraser's website has been down since Wednesday.

In a statement, which does not mention XPO Logistics, Sports Direct said: "Since the acquisition, the group has started meeting with various House of Fraser suppliers and concessions".

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