House of Fraser takes its website offline

Cornelia Mascio
Agosto 19, 2018

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.

The Times reports that XPO logistics, which operates a House of Fraser distribution centre in Wellingborough, has told employees to stop accepting orders from the department store. The newspaper adds that the retailers received many complaints from customers who had their deliveries delayed.

House of Fraser's website is down and it is not now accepting customer orders.

"Please accept our apologies for any inconvenience caused and thank you from everyone at House of Fraser for your patience at this time".

Sports Direct group bought House of Fraser in a GBP90m deal announced just hours after the chain went into administration.

House of Fraser's creditors also include its PR firm, Newgate Communications, which is owed £33,512, and Royal Mail, which is owed £135,465.

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

But the report states: "These actions were unable to address the downturn in trading performance and the directors concluded that the business had reached a stage where it was no longer able to continue to meet its ongoing costs in its current format".

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

House of Fraser's website has been down since Wednesday. Nevertheless, this is a part of the industry that is under a huge amount of pressure.

The news follows at the heels of a payment dispute between XPO Logistics, which runs two of HoF's warehouses, and Sports Direct, who has stopped fulfilling orders for the retailer and who is owed 30.4 million pounds.

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