House of Fraser cancels ALL online orders amid warehouse dispute

House of Fraser is cancelling all online orders and refunding thousands of customers after a dispute with its warehouse operator meant deliveries were delayed.

It comes after an outcry from customers who had not received goods they ordered from the website of the department store chain, which was bought by Sports Direct last week.

The firm’s website was taken offline on Wednesday amid an ongoing payment dispute with its warehouse operator XPO Logistics which paused processing orders.

In its latest updated, House of Fraser said: “Due to delays with delivering online orders, we have taken the decision to cancel and refund all orders that have not already been sent to customers.

“All customers affected will receive an email in the next couple of days. Please accept our apologies for any inconvenience caused," it added on Thursday night.

The halt comes after The Times reported employees at a key warehouse supplying products to House of Fraser stores and online shoppers downed tools in the wrangle over delivery payment terms with Sports Direct.

The Times said it understood that workers at the chain's distribution centre in Wellingborough were 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.

Mike Ashley, the founder and chief executive of Sports Direct, announced on Friday that he was buying House of Fraser out of administration for £90 million.

In a statement, which does not mention XPO Logistics, Sports Direct said: "Since the acquisition, the group has started meeting with various House of Fraser suppliers and concessions.

"Sports Direct is committed to creating stability as soon as possible, and building exciting plans for the future."

The Standard has approached XPO Logistics for comment.

House of Fraser had already been warning customers of delays to some online deliveries following the recent change of ownership.

It had said on Twitter: "Regrettably, due to the recent change in ownership, some orders have been delayed. We don't currently have a timescale for delivery. However, your order will be delivered as soon as possible."