More than 600 jobs at XPO Logistics are at risk after the collapse and subsequent sale of House of Fraser to Sports Direct, which has left the operator owed £30.4m.
The department store group initially agreed a company voluntary arrangement in June. The business was subsequently put into administration with EY, and then the majority of assets sold to Mike Ashley’s Sport Direct for £90m on the 10 August. Sports Direct has been a major shareholder in the retail chain of 58 stores in the UK and Ireland.
According to media reports XPO Logistics has effectively locked up two warehouses it runs for House of Fraser in Milton Keynes and Wellingborough, causing the retailer to suspend its website and cancel existing orders.
The GMB union said 627 jobs were now at risk at XPO logistics with members of staff on a 45 day consultation period from Friday (17 August).
Sports Direct is not obliged to pay the near £484m owed to unsecured creditors of House of Fraser at the time of its collapse.
Alan Costello, GMB Organiser, said: “This is a massive blow to our members based at depots in Wellingbrough and Milton Keynes who have been left in limbo.
“There are more than 600 people desperately worrying about their futures and how they’re going to be able to put food on the table for their families.
“It’s time for Mike Ashley to show that his rescue plan for House of Fraser is not simply a plan to boost his bank balance at the expense of House of Fraser workers and our members.”
Other significant transport creditors of House of Fraser include: Yodel, £710,916; UK Mail (Deutsche Post DHL), £128,701; Royal Mail, £135,465; DHL Supply Chain, £111,397; Allport Cargo Services, £501,735; Yodel, £710,916.
XPO Logistics declined to comment.
