House of Fraser’s distribution operation in Wellingborough, run by XPO Logistics, has halted work over delivery payment terms with its new owners Sports Direct.
According to The Times, workers were told not to accept goods and process deliveries, which has meant product shortages at some House of Fraser outlets. This has led to deep concerns that up to 600 warehouse jobs could be at risk. House of Fraser went into administration on 10 August, just hours before Sports Direct announced that it was taking over the company. EY, who were initially called in as administrators after failing to agree terms with creditors, released documents stating that XPO were owed more than £30m by the retailer.
An undisclosed source representing XPO has told SHD that this figure in the EY report was "grossly exaggerated, and when redundancies are earmarked, we can appropriate staff to other warehouses."
Meanwhile, House of Fraser has announced that its flagship store in Oxford Street will remain trading after the retailer initially earlier in the summer confirmed that it was one of the 28 stores to be culled.