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House of Fraser cancels all online orders

House of Fraser has cancelled all online orders, following “significant delays” with deliveries.

The retailer took its website offline on 15 August following a dispute with warehouse operator XPO Logistics.

Workers at the department store’s Wellingborough and Milton Keynes distribution centres were told by site operator XPO Logistics to stop accepting goods and processing deliveries for HoF last week.

As a result, there have been product shortages in some HoF stores and delayed or failed deliveries of online orders.

House of Fraser has now contacted shoppers to say it has cancelled all orders that have not yet been sent to shoppers.

In a statement the retailer said: “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.”

As previously reported by Drapers, HoF suppliers are collectively owed at least £70m in payments due this week relating to sales in June and July. However, HoF administrator EY has said the amounts owed will not be paid.

Sports Direct paid £90m to acquire HoF, its stock and stores from the administrator last week in a pre-pack administration deal. HoF is not legally obliged to make payments for any goods sold before the transaction, leaving suppliers and concession operators facing big debts.

Suppliers told Drapers the shortfall could push some smaller business over the edge.

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.

 

 

 

Readers' comments (1)

  • how can this failing business survive without the ability to trade online and deliver to customers? Maybe I am missing something??

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