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House of Fraser distribution centre in payment dispute

Reports suggest employees at a key warehouse supplying House of Fraser stores and online shoppers have halted work over delivery payment terms with Mike Ashley’s Sports Direct.

The Times reports that the workers at the department store’s Wellingborough distribution centre were told by site operator XPO Logistics to stop accepting goods and processing deliveries for HoF. This has subsequently led in product shortages in some HoF outlets.

XPO Logistics began running the Wellingborough site two years ago. The Times suggests it is attempting to get Sports Direct to honour existing contract terms, and could be currently owed tens of millions pounds.

Ashley last week purchased HoF for £90m in a pre-pack administration deal. These allow purchasers to jettison pension liabilities and other creditor claims.

Speaking to The Sun, Ashley revealed plans to turn the 169-year-old chain into “Harrods of the high street” through the introduction of concierge services and luxury brands such as Gucci, Prada and Mallet Footwear.

XPO Logistics declined to comment.

Drapers has contacted HoF for comment.

 

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