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House of Fraser apologises after cancelling all online orders

19 August 2018

Sports Direct chief executive Ashley said at the time: "We will do our best to keep as many stores open as possible".

United Kingdom department store retailer House of Fraser is cancelling all online orders and refunding customers following a reported dispute with its warehouse operator.

Sports Direct owner Mike Ashley said his ambition was to turn the department store into the "Harrods of the high street" after buying the firm from administrators earlier this month. 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".

"We didn't take this decision lightly, but since we can not give our customers clear assurances of when their orders will be delivered, we believe cancellation is the best option".

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deliveries following the chaos of the past few days where a number of fashion brands with outstanding debts have withdrawn their stock while negotiations continue over payment.

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

Sports Direct "has no legal obligation to pay suppliers money owed before its buyout as their debts were part of the administration", adds the paper, but new owners "often agree to settle at least some of the debts in the interest of good relations".

One said on Twitter: "Absolutely disgraceful".

Outlining the company's decline, EY said House of Fraser took several steps to try to address the issues, securing a £50 million injection of capital in March. Yes a week ago for my daughters birthday. "Get my money back ASAP". A message on the site read: "We're now working hard to make some improvements to the website".

House of Fraser apologises after cancelling all online orders