XPO tussling with UK retail chain
XPO Logistics formerly operated two logistics centre in Milton Keynes und Wellingborough (both UK) on behalf of the House of Fraser, a British department store chain. However, the retailer went into administration on 10 August, and was sold shortly afterwards to Mike Ashley, owner of Sports Direct International.
At that time, the House of Fraser still owed GBP 30.4 million to XPO Logistics. Ashley refused to pay the debt, so XPO Logistics ceased to process orders for the retailer and locked the two centres. In return, the retail chain announced that it had cancelled all online orders.
According to a Sunday Times report, Chinese investors had promised to pay XPO Logistics the outstanding sum of money, but the deal did not materialise. Now it is not clear what will happen to the logistics centres. (mw)