A union representing workers at two XPO Logistics sites said a report earlier this week that the operator and its client House of Fraser had reached a compromise appears to be false.

XPO Logistics is owed £30.4m as a creditor of the department store chain, 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 has been withholding services to House of Fraser from the administration date, paralysing its supply chain.

XPO Logistics uses two warehouses to service House of Fraser, in Milton Keynes and Wellingborough. Its decision to freeze activities there led to the retailer suspending its website and cancelling existing orders.

According to the GMB union it has also placed 627 jobs at those sites at risk of redundancy. “Our members are turning up for work at the sites and being stood down every day,” a GMB spokesman confirmed, suggesting a deal was still to be struck.

The spokesman reiterated the union’s statement last week urging resolution. “We call on XPO and Sports Direct to come to an agreement that will stop 627 people facing redundancy. This isn’t just a game of profits – this is our members’ livelihoods on the line.”

XPO Logistics declined to comment and Sports Direct had not responded as this article was published. The businesses are expected to hold talks next week (3 September).

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