By Elias Jahshan from Retail Gazette
- House of Fraser’s Wellingborough warehouse, run by XPO Logistics, will close down in spring
- 280 workers to be left without jobs
- Comes after months of uncertainty since House of Fraser was acquired by Sports Direct
House of Fraser’s Wellingborough distribution centre is poised to shut down this spring, which means up to 280 workers will be left without jobs.
The warehouse, run by XPO Logistics, is closing down on April 10 after months of uncertainty since the retailer was bought out of administration my Sports Direct last summer.
XPO Logistics has not commented.
When House of Fraser fell into administration, it owed XPO Logistics GBP 30 million.
However, Sports Direct’s pre-pack acquisition deal meant it was able to acquire the department store business without the obligation of paying the outstanding debts that came with it.
This prompted a stand-off between Sports Direct and XPO Logistics, and workers at the latter’s Wellingborough and Milton Keynes distribution centres for House of Fraser were put on notice for consultation.
XPO Logistics attempted to apply pressure on Sports Direct to make repayments when it stopped processing orders and both the Wellingborough and Milton Keynes distribution centres were temporarily shut.
While the Wellingborough site eventually reopened, the Milton Keynes warehouse closed last November and left 360 staff without jobs.