House of Fraser website offline amid reported delivery ‘wrangle’

The department store chain said that its website would be back online as soon as possible

This will be good news for the employees of House of Fraser, as it looks likely that most - if not all - of their jobs will saved.

A "pre-pack" insolvency deal allows the buyer to pick up assets but not pay pension liabilities and other unsecured claims, meaning Sports Direct has no legal obligation to pay suppliers money owed before Friday's deal.

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

According to the BBC, warehouse operator XPO Logistics is owed GBP30m (US$38.2m) and stopped processing orders last week because of the dispute. "Please accept our apologies for any inconvenience caused", they said on their Twitter.

The embattled department store chain House of Fraser has cancelled all orders placed online after a dispute with a warehouse operator.

XPO operates two warehouses, in Northamptonshire and Buckinghamshire, that handle all of House of Fraser's deliveries to customers as well as to stores.

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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". There is now no engagement, and no plans for any engagement, with no stock moving in or out of the warehouses, the source said.

On social media, House of Fraser said the reason for the site closure is due to delays with deliveries.

It is among a number of suppliers to have taken action as negotiations over payment continue with the department store chain.

In an effort to force the issue, some suppliers, believed to include fashion brand Karen Millen, Jigsaw and Whistles have now withdrawn unsold stock which was not party to the takeover agreement signed by Ashley. Turning around the business will not come easy.

Neither XPO Logistics nor Sports Direct returned a request for comment at the time of going to press.

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