House of Fraser's website is down and it is not now accepting customer orders.
"We have taken the decision to cancel and refund all orders that have not already been sent to customers", the department store said on Facebook.
House of Fraser's website has been down since Wednesday.
Meanwhile, it is understood hundreds of suppliers to House of Fraser are owed GBP753m but will not be repaid by its new owner, Sports Direct.More news: UK lawmakers urge government to relax rules on e-cigarettes
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United Kingdom department store retailer House of Fraser is cancelling all online orders and refunding customers following a reported dispute with its warehouse operator.
House of Fraser has cancelled all orders placed online following reports of a dispute with employees at a key warehouse which supplies the company.
In a tweet on Thursday, House of Fraser revealed that it would refund thousands of online customers potentially millions of pounds, after cancelling orders after a wave of complaints from shoppers who had not received goods bought. "Please accept our apologies for any inconvenience caused", they said on their Twitter.
Earlier this week, after Ashley said he planned to keep as many stores open "as possible", analyst Jonathan Pritchard at Peel Hunt said Sports Direct was refusing to engage with City analysts over the "fascinating" deal. Not 1 email concerning delivery or info and now order cancelled and you say email in a few days!
These problems have been exacerbated by a decision by warehouse operator XPO Logistics to temporarily close access to two warehouses dedicated to House of Fraser deliveries as it plays hardball in negotiations.