House of Fraser shuts website in delivery row

HOUSE of Fraser faced a fresh crisis last night after shutting its website following customer complaints about missing orders.

Days after the troubled chain was bought by Sports Direct owner Mike Ashley, its distribution sites effectively shut up shop.

The two warehouses, which process orders, are run by a third-party firm called XPO Logistics, which is involved in a dispute with Sports Direct over payments.

It is understood that Mr Ashley is refusing to pay suppliers to House of Fraser, including XPO, for any work carried out before the takeover on Friday.

Sports Direct has no legal obligation to pay because the business had gone into administration. This allowed Mr Ashley to take control for a cut-price £90million and escape any outstanding debts.

Normally in these circumstances the new owner would cover some previous debts to keep key suppliers happy and ensure trade continues smoothly. In this case, it appears relations have broken down.

The impasse will create new cracks in the shaky relationship with customers.

The two warehouses at the centre of the dispute are in Wellingborough, Northamptonshire, and Milton Keynes, Buckinghamshire. It is reported that XPO staff at Milton Keynes have prevented Sports Direct lorries from picking up stock.

Alan Costello, a regional organiser for the GMB union that represents workers at the warehouse, said staff had been told to down tools on Friday and were still ‘sitting in the canteen playing cards’.

The workers are being paid their basic wage, but some will miss out on bonuses.

A source at Sports Direct said it was dealing with suppliers on a case-by-case basis, adding: ‘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.’

Customers went on social media to complain that purchases have not arrived.

The chain has already faced criticism for refusing to accept its own gift vouchers following the takeover. Customers have been told to post them to head office for replacements to be issued.