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House of Fraser cancels all online orders House of Fraser cancels all online orders
(about 1 hour later)
House of Fraser has said it will cancel all online orders and refund customers after a dispute with its warehouse operator meant deliveries were delayed.House of Fraser has said it will cancel all online orders and refund customers after a dispute with its warehouse operator meant deliveries were delayed.
It follows an outcry from customers who had not received goods ordered online.It follows an outcry from customers who had not received goods ordered online.
Its warehouse operator, XPO Logistics, stopped processing orders late last week because of a payment dispute.Its warehouse operator, XPO Logistics, stopped processing orders late last week because of a payment dispute.
House of Fraser has told over 1,000 suppliers it will not pay money owed before 10 August, when Sports Direct bought the chain out of administration. House of Fraser has told more than 1,000 suppliers it will not pay money owed before 10 August, when Sports Direct bought the chain.
'Improvements' On Wednesday, House of Fraser took its website offline as deliveries began to back up and the decision to cancel online orders has angered many customers.
On Wednesday, House of Fraser was forced to take its website down as deliveries began to back up.
A message on the site says the firm is "working hard to make some improvements to the website".
The announcement that online orders have been cancelled has caused anger among customers.
One said on Twitter: "Absolutely disgraceful. Ordered a £90 purse last Thursday. Yes a week ago for my daughters birthday. Not 1 email concerning delivery or info and now order cancelled and you say email in a few days!!! Get my money back ASAP"One said on Twitter: "Absolutely disgraceful. Ordered a £90 purse last Thursday. Yes a week ago for my daughters birthday. Not 1 email concerning delivery or info and now order cancelled and you say email in a few days!!! Get my money back ASAP"
Another said two-thirds of their husband's suit would not now be delivered.Another said two-thirds of their husband's suit would not now be delivered.
They tweeted: "This was for our holidays! I don't have time to go back to Edinburgh with the trousers which are now totally useless! What do you suggest I do!"They tweeted: "This was for our holidays! I don't have time to go back to Edinburgh with the trousers which are now totally useless! What do you suggest I do!"
Retail analyst Richard Lim, chief executive at Retail Economics, said there were "kinks to be ironed out" when there were changes of ownership and management at such a large operation as House of Fraser. Richard Lim of Retail Economics said there were "kinks to be ironed out" when big companies change hands, but warned that "trust and loyalty are hard-won in retail".
He added: "But trust and loyalty are hard-won in retail. You would have thought that delivering a great service to customers would have been a priority for the company. He added: "You would have thought that delivering a great service to customers would have been a priority for the company. Delivering goods into the hands of customers now has to be the top priority."
"Delivering goods into the hands of customers now has to be the top priority going forward." XPO operates two warehouses, in Northamptonshire and Buckinghamshire, that handle House of Fraser's deliveries to stores as well as customers.
Concessions
XPO operates two warehouses, in Northamptonshire and Buckinghamshire, that handle all of House of Fraser's deliveries to customers as well as to stores.
It is among a number of suppliers to have taken action as negotiations over payment continue with the department store chain.It is among a number of suppliers to have taken action as negotiations over payment continue with the department store chain.
According to reports, fashion brands Jigsaw and Karen Millen have removed some stock from their House of Fraser concessions.According to reports, fashion brands Jigsaw and Karen Millen have removed some stock from their House of Fraser concessions.
Sports Direct is not legally obliged to pay suppliers money owed before its £90m buyout as their debts were part of the administration.Sports Direct is not legally obliged to pay suppliers money owed before its £90m buyout as their debts were part of the administration.
'Ongoing relationships' However, rival retailer Philip Day, who also wanted to buy House of Fraser, has said Mr Ashley should pay suppliers - who are said to be owed £70m - "in full".
Mr Lim says: "It is a complex situation, with lots of suppliers. Sports Direct has said it wants to "restore the right level of ongoing relationships" with its brands.
"The fact that suppliers will not get paid money owed prior to 10 August is not a great surprise. The sum he paid for House of Fraser would have priced in that situation." Mike Ashley, who controls Sports Direct, has also vowed to keep most of House of Fraser's 59 stores open.
However, businessman Philip Day, who also wanted to buy House of Fraser, has said Mr Ashley should pay suppliers - who are said to be owed £70m - "in full".
Sports Direct, which bought the chain just hours after it went bust, has said it wants to "restore the right level of ongoing relationships" with its brands.
Owner Mike Ashley has also vowed to keep open the bulk of the 59 House of Fraser stores.
Sports Direct already held an 11% stake in the group, which had been intending to close 31 shops under a now-abandoned restructuring plan.
Six offersSix offers
Meanwhile, administrator EY has said there were six bidders for House of Fraser, with four of them - offering between £40m and £49m - being dismissed for various reasons. Meanwhile, administrator EY has said there were six bidders for House of Fraser, with four - offering between £40m and £49m - being dismissed for various reasons.
This left two potential names in the frame, with one of the remaining pair offering £1 to acquire the group on a solvent basis.This left two potential names in the frame, with one of the remaining pair offering £1 to acquire the group on a solvent basis.
This party then later proposed to acquire the business and assets following any insolvency for £100m - £10m more than what Sports Direct ultimately paid - before withdrawing their interest. This party then later proposed to acquire the business and assets following any insolvency for £100m - £10m more than what Sports Direct ultimately paid - before withdrawing.
Also, EY said there was "no prospect of any funds becoming available to unsecured creditors of either of the companies" House of Fraser Limited or House of Fraser stores.Also, EY said there was "no prospect of any funds becoming available to unsecured creditors of either of the companies" House of Fraser Limited or House of Fraser stores.
Q: What will happen to my House of Fraser online order?
If items are in stock, shoppers may still receive them. However, customers are being emailed over the next two days to formally cancel pending orders and be refunded in full.
Q: Can I return an unwanted item bought online for a refund?
Yes. Anyone wanting to return existing purchases will have their statutory rights honoured.
Q: Can I still use a gift voucher?
Customers with a store card should write to Gift Cards, 27 Baker Street, London, W1U 8AH and it will be replaced by one of equivalent value for use in future House of Fraser (but not Sports Direct) stores.
Has your online order with House of Fraser been cancelled? Share your story with us by emailing haveyoursay@bbc.co.ukHas your online order with House of Fraser been cancelled? Share your story with us by emailing haveyoursay@bbc.co.uk
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