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House of Fraser cancels all online orders

Lauretta Roberts
16 August 2018

House of Fraser has cancelled all outstanding online orders as a dispute over payment with logistics supplier XPO has left orders unfulfilled, as well as a shortage of stock in stores.

The retailer, which was acquired by Sports Direct having been placed briefly into administration on Friday of last week, issued a statement confirming the news. "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," it said.

https://twitter.com/houseoffraser/status/1030125197473599488

Yesterday the retailer took its website offline after XPO, which operates two warehouses on behalf of the retailer, had paused on fulfilling orders over a dispute about unpaid debts. Sports Direct acquired House of Fraser out of administration in a pre-pack deal meaning debts racked up under its previous owners were effectively wiped out. It is believed that unsecured creditors are owed a total of £70m.

Sports Direct and its owner Mike Ashley are not legally obliged to pay any debts prior to the administration but in such cases buyers of businesses do sometimes settle certain debts in part or full to ensure good ongoing relationships with key suppliers. It is feared that some suppliers themselves may be forced into administration as a result of unpaid bills.

Philip Day, owner of Edinburgh Woollen Mill, Jaeger and other brands, has urged Ashley to do "the honourable thing" and settle the debts. Day missed out to Ashley in his bid to buy the business and some of his brands have concessions in House of Fraser stores.

Ashley, who also owns luxury retailer Flannels, has said he wants to save up to 47 of House of Fraser's 59 stores and take the chain back upmarket, effectively creating the "Harrods of the high street". Some stores may have floors given over to Flannels, which stocks labels such as Burberry and Saint Laurent, or Sports Direct.

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