XPO Logistics, the company running House of Fraser’s Wellingborough and Milton Keynes distribution centres, has placed more than 600 members of staff into consultation, following the retailer’s fall into administration.
GMB, the union for logistics workers, says a total of 627 jobs are being cut.
XPO is owed £30.4m by House of Fraser.
Alan Costello, GMB organiser, said: “This is a massive blow to our members based at depots in Wellingbrough and Milton Keynes, who have been left in limbo.
“There are more than 600 people desperately worrying about their futures and how they’re going to be able to put food on the table for their families.
“It’s time for Mike Ashley to show that his rescue plan for House of Fraser is not simply a plan to boost his bank balance at the expense of House of Fraser workers and our members. GMB will be fighting hard to ensure members are treated fairly and to save as many jobs as possible.”
HoF took its website offline on 15 August following a dispute with XPO, which stopped accepting goods and processing deliveries for the retailer.
On 16 August HoF contacted shoppers to say it has cancelled all orders that have not yet been sent.
Sports Direct paid £90m to acquire HoF, its stock and stores from the administrator in a pre-pack administration deal. Sports Direct is not legally obliged to make payments for any goods sold before the transaction, leaving suppliers and concession operators facing big debts.
Drapers also revealed that several concession holders have removed stock from House of Fraser stores, while some brands that are sold in HoF stores via wholesale agreements are understood to be reviewing “retention of title” clauses.
Luxury bag brand Mulberry operates 21 HoF concessions and is owed £2.4m by the retailer. After reviewing debtor balances, fixed assets and potential costs, the brand is expecting to provide £3m in exceptional costs for the six months to 30 September 2018.