Sports Direct reneges on offer to refund House of Fraser shoppers

The department store’s new owner, Sports Direct, which bought the chain out of administration in a £90m deal last month, has rowed back on the offer to shoppers.

Instead, House of Fraser said customers who were due refunds would have to apply to administrators EY for payment, as unsecured creditors.

A spokesman for the department store chain told The Guardian: “We cannot comment on individual cases, however, the correct course of action for customers who have issues regarding goods purchased prior to August 10 is to contact the administrators at EY.”

A week after Sports Direct rescued House of Fraser, it said it would cancel and refund any online orders that were yet to be sent out.

The pledge came after House of Fraser was forced to shut down its website amid a dispute between Sports Direct and XPO Logistics, which operates HoF’s warehouses.

The retailer initially told shoppers through its social media channels that they would receive emails within days regarding refunds.

But Sports Direct has no legal obligation to refund any orders placed before HoF went into administration.

EY said it was unlikely that customers who are awaiting goods would receive any money back from the administration process.

Any refunds would likely amount to a few pence in the pound, an EY spokeswoman said, and would take at least 12 months to process.

Shoppers who have attempted to return unwanted goods have had them returned by Royal Mail, since HoF’s warehouse is refusing to accept them.

It is also unclear what will happen to HoF gift cards. Holders had been told to send them to Glasgow, but customers are yet to be told if they will be replaced.