The union representing staff members at House of Fraser’s distribution depots in Wellingborough and Milton Keynes is again calling for an end to an ongoing dispute between operator XPO and House of Fraser’s new owner Sports Direct.
The distribution centres are reported to have closed again, after reopening briefly last week.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“As far as we are aware, no agreement has been reached and both depots remain non-operational,” says Alan Costello, organiser at the GMB union. “Our members are turning up for work at the sites and being stood down each day.”
The union says the businesses are expected to hold further talks on Monday (3 September) and urges XPO and Sports Direct “to get round the table and come to an agreement which will stop 627 people facing redundancy.”
The two depots handle House of Fraser’s deliveries to stores as well as customers, and its website remains offline.
The saga started after the department store retailer House of Fraser collapsed earlier this month, before being sold hours later to Sports Direct, owned by controversial retail tycoon Ashley, for GBP90m (US$115.5m). The so-called ‘pre-pack’ deal does not oblige Ashley to pay suppliers money owed before the acquisition.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataXPO Logistics is understood to be owed GBP30m and stopped processing orders for House of Fraser because of the dispute.
House of Fraser’s wider debts are believed to approach GBP1bn, with luxury goods brand Mulberry among brands including Giorgio Armani, Kurt Geiger, Versace, Gucci, Prada and Jigsaw who are among unsecured creditors owed around GBP484m (US$379m).
