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House of Fraser cancels all online orders House of Fraser cancels all online orders
(35 minutes later)
House of Fraser has said it will cancel all online orders and refund customers after a payment dispute with its warehouse operator delayed deliveries. House of Fraser will cancel all online orders and refund customers after a payment dispute with its warehouse operator delayed deliveries.
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.
Warehouse operator XPO Logisticis is owed £30m and stopped processing orders last week because of the dispute.Warehouse operator XPO Logisticis is owed £30m and stopped processing orders last week because of the dispute.
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. Meanwhile, administrators revealed that hundreds of suppliers to House of Fraser were owed £753m but will not be repaid by its new owner, Sports Direct.
'Useless'
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 took its website offline as deliveries began to back up and the decision to cancel online orders has angered many 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!"
'Customer service'
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".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: "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."
XPO operates two warehouses, in Northamptonshire and Buckinghamshire, that handle House of Fraser's deliveries to stores as well as customers.XPO operates two warehouses, in Northamptonshire and Buckinghamshire, that handle House of Fraser's deliveries to stores as well as customers.
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.
House of Fraser customer case story 'It is a lot of money to us'
Kent-based Rob Brice and his wife were given £500 of House of Fraser gift vouchers by his grandmother for their wedding in 2015. Last week he placed an online order with the firm for around £380. Kent-based Rob Brice and his wife were given £500 of House of Fraser gift vouchers by his grandmother for their wedding in 2015. Last week he placed an online order worth about £380.
It went through, but after hearing nothing for five days, he emailed the firm. He found they were no longer accepting gift cards "so my left over value on the card was lost". He received an email stating his order was cancelled and the sum would be refunded to the gift card - one he says is now no longer useable. After hearing nothing for five days, he sent an email and was told they were no longer accepting gift cards, meaning "my leftover value on the card was lost". Another email said his order was cancelled and the sum would be refunded to the gift card - one he says is now no longer useable.
Mr Brice has called House of Fraser but gets an automated message. He has also emailed and contacted the firm via twitter, without results. Mr Brice has called House of Fraser but only gets an automated message. Neither has he had a response to emails and tweets.
"I'm going to look to call trading standards today to understand my customer rights in the matter, as it is a lot of money to us and would have been to my nan," he says. "I'm going to look to call Trading Standards today to understand my customer rights in the matter, as it is a lot of money to us and would have been to my nan," he says.
'Ongoing relationships''Ongoing relationships'
Fashion brand Jigsaw has removed stock from its 20 House of Fraser concessions, and Karen Millen is understood to have followed suit. Fashion brand Jigsaw has removed stock from its 20 House of Fraser concessions, and Karen Millen - which was owed more than £950,000 - is understood to have followed suit.
Others are owed even more: Mulberry is out of pocket by £2.4m, while All Saints is owed close to £1.8m and Giorgio Armani almost £1.6m.
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.
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".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".
Sports Direct has said it wants to "restore the right level of ongoing relationships" with its brands.Sports Direct has said it wants to "restore the right level of ongoing relationships" with its brands.
Mike Ashley, who controls Sports Direct, has also vowed to keep most of House of Fraser's 59 stores open.Mike Ashley, who controls Sports Direct, has also vowed to keep most of House of Fraser's 59 stores open.
Six offersSix offers
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.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.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?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.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?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.Yes. Anyone wanting to return existing purchases will have their statutory rights honoured.
Q: What happens to gift vouchers?Q: What happens to gift vouchers?
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.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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