House of Fraser cancels all online orders and refunds customers

Mike Ashley closes House of Fraser website in bitter payments dispute

However, access to both warehouses remained closed on Thursday as the dispute remained unresolved and House of Fraser was forced to cancel all the orders.

After taking its website down on Wednesday, House of Fraser has now announced that due to delays in delivering online orders, it has made a decision to cancel all orders and refund the customers.

Sports Direct is adamant however that it will not honour debts owed to supplier from before last Friday, when it assumed ownership of the business.

"All customers affected will receive an email about the cancellation and refund in the next couple of days".

Beleaguered British department store House of Fraser is cancelling all online orders and will be refunding thousands of customers potentially millions of pounds after a dispute with its warehouse operator held up deliveries. "Please accept our apologies for any inconvenience caused".

The paper said it understood that workers at the chain's distribution centre in Wellingborough had been told by XPO Logistics, which operates the site, to stop accepting goods and processing deliveries, leading to product shortages in some House of Fraser outlets.

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A source told just-style that Ashley and his team have been working closely with various different suppliers and creditors to try and agree a way forward but said that XPO has been "completely unreasonable".

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

Other House of Fraser clothing suppliers have taken action as they negotiate over payments.

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

"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. "If not can I have my money back so I can shop somewhere else". "However, your order will be delivered as soon as possible".

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