House of Fraser website offline amid reported delivery woes

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XPO could now be owed tens of millions of pounds, but under the pre-pack administration deal in which House of Fraser was acquired, the purchases are able to discard existing pension liabilities and creditor claims.

XPO is among more than 1,000 suppliers to which House of Fraser has written to say it will not cover money owed before last Friday when Mike Ashley's Sports Direct group bought the department store business out of administration for £90mln.

House of Fraser has been bought over by Sports Direct boss Mike Ashley, meaning numerous stores will be kept open by the firm.

"All customers affected will receive an email in the next couple of days".

United Kingdom department store retailer House of Fraser is cancelling all online orders and refunding customers following a reported dispute with its warehouse operator.

Sports Direct, after acquiring House of Fraser for £90m out of administration last Friday, revealed the decision to cancel online orders and offer refunds to all customers via Twitter overnight.

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The logistics firm operates two warehouses, in Wellingborough, Northamptonshire, and Milton Keynes, Buckinghamshire, that handle all House of Fraser's deliveries to customers as well as to stores.

HoF has already been forced to cancel all its online orders after a dispute with its third-party logistics company, XPO, which it owes £30m.

"Some of the biggest brands are in a "Mexican standoff" with Mike Ashley over debt, sources said".

However, businessman Philip Day, who also wanted to buy House of Fraser, has said Mr Ashley should pay suppliers - who are said to be owed £70m - "in full". Some have taken action while negotiations over payments continue.

Richard Lim, chief executive of economics research consultancy Retail Economics, believes the acquisition is a "hugely ambitious move" for Sports Direct.

But XPO has halted work as it tries to convince Sports Direct to honour existing contract terms.

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