House of Fraser cancels all online orders and refunds customers

House of Fraser

House of Fraser

Visitors are greeted with the following message: "we're now working hard to make some improvements to the website".

"We have taken the decision to cancel and refund all orders that have not already been sent to customers", the department store said on Facebook.

EY has estimated that House of Fraser's unsecured creditors, aside from its employees, which will be transferred to Sports Direct, are owed around £484 million.

"The combination of both businesses will yield some vital cost-saving synergies while it is likely that some of the struggling House of Fraser sites will be rebranded to Sports Direct".

Discount tycoon Mike Ashley could emerge from the House of Fraser deal "smelling of roses" if he took charge of the company's pension scheme, MP Frank Field has said.

House of Fraser said on Thursday that it had seen "significant delays" with delivering online orders.

There is speculation that XPO is owed "tens of millions of pounds", The Times reported, while Sports Direct sources told The Guardian said the XPO was being "totally unreasonable in terms of their demands" and was "refusing to engage in any process".

Customers had been complaining about missing and delayed deliveries following the chaos of the past few days where a number of fashion brands with outstanding debts have withdrawn their stock while negotiations continue over payment.

A message posted on the retailer's website said it was "working hard to make some improvements", telling customers it will be "back up and running as soon as possible".

The broadcaster quotes one Twitter user who wrote: "Absolutely disgraceful".

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.

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