House of Fraser cancels all online orders and goes offline
Retailer acts on complaints as dispute with warehouse operator holds up deliveries
Beleaguered British department store House of Fraser is cancelling all online orders and will be refunding thousands of customers potentially millions of pounds after a dispute with its warehouse operator held up deliveries.
The decision comes “after the chain's website was taken offline amid complaints from customers about delayed deliveries since the company was bought by Sports Direct for £90m last week”, says Sky News.
XPO logistics, which operates a House of Fraser distribution centre in Wellingborough, “has told employees to stop accepting orders from the department store”, reports The Times.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
House of Fraser has told over 1,000 suppliers it will not pay money owed before 10 August, when Sports Direct bought the chain out of administration.
But XPO has halted work as it tries to convince Sports Direct to honour existing contract terms.
“We have taken the decision to cancel and refund all orders that have not already been sent to customers,” the department store said on Facebook.
“We didn't take this decision lightly, but since we cannot give our customers clear assurances of when their orders will be delivered, we believe cancellation is the best option.”
A source close to Sports Direct told The Guardian it had been forced to cancel orders as XPO was being “totally unreasonable in terms of their demands” and was “refusing to engage in any process” which would “move the situation forward”.
“XPO is trying to hold us to ransom,” the source said.
Sports Direct “has no legal obligation to pay suppliers money owed before its buyout as their debts were part of the administration”, adds the paper, but new owners “often agree to settle at least some of the debts in the interest of good relations”.
The announcement that online orders have been cancelled “has caused anger among customers”, says the BBC.
The broadcaster quotes one Twitter user who wrote: “Absolutely disgraceful. Ordered a £90 purse last Thursday. Yes a week ago for my daughters birthday. Not 1 email concerning delivery or info and now order cancelled and you say email in a few days!!! Get my money back ASAP”.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Today's political cartoons - November 2, 2024
Cartoons Saturday's cartoons - anti-fascism, early voter turnout, and more
By The Week US Published
-
Geoff Capes obituary: shot-putter who became the World’s Strongest Man
In the Spotlight The 'mighty figure' was a two-time Commonwealth Champion and world-record holder
By The Week UK Published
-
Israel attacks Iran: a 'limited' retaliation
Talking Point Iran's humiliated leaders must decide how to respond to Netanyahu's measured strike
By The Week UK Published
-
Frasers Group: keeping it in the family
Under the Radar Mike Ashley is passing the reins of his high street empire to his prospective son-in-law
By The Week Staff Published
-
Are Nike and Adidas too dominant?
Speed Read Mike Ashley calls for investigation into sportswear giants' supremacy
By The Week Staff Last updated
-
Debenhams set for administration after rejecting Sports Direct offer
Speed Read Retailer’s biggest shareholder, Mike Ashley, embroiled in bitter battle for control with its board
By The Week Staff Last updated
-
Mike Ashley feels the force of Star Wars fans
In Depth Confusing Obi-Wan Kenobi with Darth Vadar leads to anger. Anger leads to hate. Hate leads to the Dark Side - of Twitter
By The Week Staff Published
-
HMV saved from closure by £50m rescue deal with Hilco
Speed Read Plan to save stricken music chain, backed by entertainment industry, could save 2,500 jobs
By The Week Staff Published