House of Fraser cancels all online orders

An attempt by the retail billionaire Philip Day to buy House of Fraser fell apart last week. The chain fell into administration and was bought by Mike Ashley’s Sports Direct

Meanwhile, it is understood hundreds of suppliers to House of Fraser are owed GBP753m but will not be repaid by its new owner, Sports Direct.

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.

Sports Direct has cancelled all of House of Fraser's online orders after a dispute with its new department store arm's warehouse operator, while some fashion suppliers have removed stock as payment wrangles continue.

Customer gift cards and vouchers will also no longer be accepted online or in store.

Discount tycoon Mike Ashley could emerge from the House of Fraser deal "smelling of roses" if he took charge of the company's pension scheme, MP Frank Field has said.

"My ambition is to transform House of Fraser into the Harrods of the High Street".

It said it would be issuing refunds.

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Issuing a statement over the decision to cancel and refund all orders, House of Fraser said on Facebook: "We didn't take this decision lightly, but since we can not give our customers clear assurances of when their orders will be delivered, we believe cancellation is the best option".

Neither XPO Logistics nor Sports Direct returned a request for comment at the time of going to press.

"All customers affected will receive an email in the next couple of days".

"I made an order on Sunday and still haven't received my order", said one person on Twitter. "Get my money back ASAP". Not [one] email concerning delivery or info and now order cancelled and you say email in a few days!

Other House of Fraser clothing suppliers have taken action as they negotiate over payments.

A message on the retailer's home page reads: 'We're now working hard to make some improvements to the website.

Sports Direct chief executive Ashley said at the time: "We will do our best to keep as many stores open as possible".

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