XPO Logistics and House of Fraser may have reached a compromise in their supply chain dispute, which has paralysed the department store chain.

The logistics firm is owed £30.4m as a creditor of the retailer, which was placed into administration on 10 August and saw most of its assets sold to Mike Ashley’s Sports Direct shortly after.

The operator had been withholding services to House of Fraser as a consequence from the administration date.

XPO Logistics has two warehouses it runs for House of Fraser in Milton Keynes and Wellingborough.

It froze activities at those, causing the retailer to suspend its website and cancel existing orders. According to the GMB union is also placed 627 jobs at those sites at risk of redundancy.

However, the union issued a statement today suggesting activity had now resumed at the affected sites.

“House of Fraser’s CEO Alex Williamson reportedly said the centres are expecting to be able to take receipt of concession deliveries, collect from suppliers and process stock to the stores from today,” the union said.

It added: “The company has not confirmed anything with GMB – the union representing staff members at the both depots.

“We call on XPO and Sports Direct to get round the table and come to an agreement which will stop 627 people facing redundancy.

“This isn’t just a game of profits - this is our members’ livelihoods on the line,” said Mick Rix, GMB national officer.

XPO Logistics and Sports Direct were approached for comment.

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