More than 600 jobs are under threat at two House of Fraser warehouses after a stand-off between the American transportation group that operates the sites and Mike Ashley’s Sports Direct, the new owner of the department stores chain.
Only ten days after House of Fraser collapsed into administration, XPO Logistics has begun a redundancy consultation with all 627 employees at warehouses in Wellingborough and Milton Keynes that supply the retailer’s outlets and fulfil online orders.
The transportation group is owed £30m by House of Fraser, but Ashley, the billionaire who bought House of Fraser out of administration, has told suppliers that he will not pay debts prior to his takeover.