Sports Direct fails to guarantee House of Fraser customers refunds

London, UK - November 22nd, 2017: House of Fraser department store in City of London.

Sports Direct has said that it will not refund House of Fraser customers for undelivered goods since the group’s collapse.

Following his £90 million purchase of the department store, Sports Direct boss Mike Ashley told online customers that the group would cancel and refund orders that had not been sent out.

Earlier this week, the company said customers would join the list of other unsecured creditors applying for payment.

“We cannot comment on individual cases, however the correct course of action for customers who have issues regarding goods purchased prior to 10 August is to contact the administrators at EY,” said a House of Fraser spokesperson.

Customers have complained on the group’s Facebook page over the lack of clarity and lack of promised funds.

House of Fraser offered refunds via its official social media on 16 August.

Sports Direct does not have any legal obligation to refund orders made before the department store went into administration. However, new owners often settle the debt in the interest of good relations.

Steve Nowottny, from MoneySavingExpert, said: “While there’s often confusion in this sort of situation, communication to House of Fraser customers has been particularly poor, with many unanswered questions over online orders, gift cards and return rights.”

“House of Fraser needs to act straight away to ensure that customers who have been left sometimes hundreds of pounds out of pocket are refunded immediately.”

Earlier this week, Sports Direct chairman Keith Hellawell announced his resignation after he was not put up for re-election.

“Dr Keith Hellawell has today informed the board of his decision to step down as chairman and as a director of the company, having served since November 2009,” said the group in a statement.

“Dr Hellawell will retire with effect from the conclusion of today’s AGM, and will therefore not be seeking re-election. David Daly, non-executive director, will take up the role of chairman at the conclusion of the AGM.”

Shares in Sports Direct (LON: SPD) are trading up 1.23 percent at 353,50 (0955GMT).