House of Fraser still selling gift cards online despite not accepting them in shops
The new owners of House of Fraser - Sports Direct - are now saying customers with gift cards will be given replacements as long as they send them off to head office
HOUSE of Fraser is still selling gift cards online despite refusing to accept them in shops.
On Friday, Sports Direct, which is run by billionaire businessman Mike Ashley, paid £90million in cash for the retailer.
But shoppers complained that gift cards and vouchers were no longer accepted in branches, despite the chain being saved.
A spokesperson for House of Fraser confirmed that the issue was “temporary” and would be “resolved shortly” as they await guidance from the new owner.
Now shoppers are being told that they must send off gift cards and vouchers to House of Fraser’s head office where a replacement will be issued.
This morning the House of Fraser website still appeared to be selling gift vouchers.
In a statement to The Sun, a House of Fraser spokesperson said: “The business was purchased out of administration for a cash consideration.
“As a result of this process Sports Direct has no liability to customers in possession of existing gift cards and vouchers.
“However we encourage these customers in possession of gift cards and vouchers to send them into the House of Fraser head office at Gift Cards, 27 Baker Street, London, W1U 8AH, whereby replacements will be issued.”
When a retailer’s future is put in jeopardy shoppers rush to use up gift cards and vouchers in case the firm stops trading for good.
It is up to the administrators to decide whether they will continue to accept them.
Ashley’s Sports Direct already had an 11 per cent stake in the chain.
The 53-year-old is worth an estimated £2.8billion and is also owner of Newcastle United.
Chief executive of Sports Direct Mike Ashley said: “We will do our best to keep as many stores open as possible. We look forward to turning House of Fraser into the Harrods of the High Street.”
At present the chain’s 59 stores remain open. Although, there has been no confirmation about what will happen to the 31 earmarked for closure.
The retailer has a 170 year history as one of the country’s best-known fashion brands.
Its first shop opened in Glasgow by Hugh Fraser and James Arthur in 1849.
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