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House of Fraser cancels and will refund existing online orders

Department store chain House of Fraser has taken the decision to cancel and refund all outstanding orders made through its website, as the fall-out around supplier payments continues.

The company’s website was taken offline yesterday, and late on it posted a message on social media saying that it will be contacting all affected customers about their deliveries and arranging refunds.

The website is still down today, with the House of Fraser warehouses currently not in operation due to a dispute over pay. Warehouse operator XPO Logistics is one of 1,000-plus suppliers that new House of Fraser owner Mike Ashley wrote to this week to say wouldn’t be receiving money owed prior to his takeover.

House of Fraser’s website says it is undergoing “maintenance”.

The pre-pack administration deal that was agreed one week ago, which saw administrators EY sell House of Fraser’s stores, web operations and brand for £90 million, leaves many suppliers out of pocket. Ashley is not obligated to pay what was owed before his Sports Direct business took ownership of the chain.

A pinned message on the official House of Fraser Twitter account says: “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.”

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