Edinburgh Woollen Mill Group (EWM) has closed all of its concessions in House of Fraser stores as the department store’s troubled acquisition continues.
According to Drapers, an internal email sent over the weekend asked EWM staff to “ensure that no goods/products are sold” at any of its House of Fraser concessions.
Though the motivations and details of the move are not yet known, it is understood that EWM’s Philip Day had attempted but failed to reach a deal with its new owner Mike Ashley.
Its concessions, which include Jane Norman, Jaeger and Jacques Vert, have subsequently been temporarily pulled until an agreement is reached.
This follows a tumultuous takeover process since Ashley bought the department store out of administration last month for £90 million.
Suppliers are reportedly owed millions by the embattled department store including XPO Logistics, the firm which runs its main distribution centre in Wellingborough, which is owed £30.4 million.
Since the takeover XPO has ordered workers to stop accepting goods and processing deliveries over the pay dispute, leading to House of Fraser’s website being pulled and all orders and deliveries being cancelled.
EWM is also in discussions with House of Frasers landlords with a view to buying some of the stores due to close, aiming to convert them into Days department stores.
Edinburgh Woollen Mill declined to comment at this stage.
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