Over 600 members of staff at XPO Logistics could face redundancy due to payments owed by House of Fraser to XPO.
New House of Fraser owner Mike Ashley has come under fire from The GMB union after staff at XPO’s Wellingborough and Milton Keynes were put on a 45 day consultation period from August 17.
Retail tycoon Ashley rescued House of Fraser from administration earlier in the month via his Sports Direct business.
The department store’s logistics contractor XPO is reportedly owed £30.4 million, while House of Fraser’s wider debts are believed to approach £1 billion.
Sports Direct is not obliged to pay off the debt of House of Fraser’s creditors.
However, if the debt isn’t paid by House of Fraser’s new owner, 627 people at the XPO warehouses could lose their jobs.
“This is a massive blow to our members based at depots in Wellingbrough and Milton Keynes who have been left in limbo,” GMB organiser Alan Costello told press.
“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,” he added.