The jobs of over 600 workers are at risk at two distribution centres operated by House of Fraser warehouse operator XPO Logistics amid an ongoing dispute between the two over an unpaid bill.
The GMB union says 627 workers at House of Fraser warehouses in Milton Keynes and Wellingborough were put on a 45-day consultation period from 17 August. The two depots handle the retailer’s deliveries to stores as well as customers.
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Department store retailer House of Fraser collapsed earlier this month. It was sold hours later to Sports Direct, owned by controversial retail tycoon Mike Ashley, for GBP90m (US$115.5m). The so-called ‘pre-pack’ deal does not oblige Ashley to pay suppliers money owed before the acquisition.
XPO Logistics is understood to be owed GBP30m and stopped processing orders for House of Fraser last week because of the dispute.
Luxury goods brand Mulberry yesterday became the latest victim of the retailer’s collapse after warning it is taking a GBP3m hit linked with the move. The upmarket handbags and accessories firm has joined brands including Giorgio Armani, Kurt Geiger, Versace, Gucci, Prada and Jigsaw who are among unsecured creditors owed around GBP484m (US$379m).
GMB, the union for logistics workers, has slammed Ashley over the potential redundancies facing XPO Logistics workers.
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By GlobalData“This is a massive blow to our members based at depots in Wellingbrough and Milton Keynes who have been left in limbo,” said Alan Costello, GMB organiser. “When companies like House of Fraser crash, history shows that asset stripping is often the consequence.
“You’ve got to question the motives for this buyout and ask whether Mr Ashley has got the interests of the company and its workers at heart. 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.”
A source told just-style XPO Logistics is looking to move the warehouse staff under consultation to positions within its other 12 distribution centres in the area.
