House of Fraser customers left fuming as Sports Direct give no refunds

House of Fraser customers awaiting refunds have been left furious after Sports Direct reneged on its promise to pay them back. 
Sports Direct, which rescued the department store chain out of administration last month, initially said it would cancel and refund any online orders that were yet to be sent out.
But it seems they have now backed out of their offer and announced to a growing list of waiting customers that they would have to apply to the administrator, EY, to receive their refunds.
The decision was taken after customers took to social media to air their grievances and complain to the company that they hadn't yet had their money back.
A spokesman for House of Fraser 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.'
An EY spokesperson said it was unlikely that customers would receive any money back from the administration process, and added that any refunds would take at least 12 months to process and amount to just a few pence in the pound.  
Those who currently hold gift cards have been advised to send them away to receive replacements. Thisismoney contacted House of Fraser and Sports Direct to get clarity on refunds and gift cards but received no reply.
A note on House of Fraser's customer service page says: 'Sports Direct announced the acquisition of the business and assets of House of Fraser on 13/08/2018. As a result of this process Sports Direct has no liability to customers in possession of existing gift cards and vouchers. 
'Customers in possession of gift cards and vouchers are encouraged to send them into House of Fraser, Gift Cards Department, 3/1 Granite House, 31 Stockwell Street, Glasgow, G1 4RZ, whereby replacements will be issued.'
Many gift card holders have taken to social media saying that they have sent their gift cards off as instructed but still haven't heard anything back. 
Sports Direct have no legal obligation to refund customers as House of Fraser's debts were part of the administration.
Despite this, new company owners will often issue refunds and handle some of the debts in efforts to maintain good relations with customers and as a gesture of goodwill.
The sports retailer made the initial promise to refund customers after House of Fraser's website was taken down in mid-August.
The website was pulled after a dispute between the store and their warehouse operator, XPO Logistics, began when XPO 'paused' processing orders after a disagreement about payment.
Ashley, owner of Sports Direct, pledged to turn House of Fraser into the 'Harrods of the High Street' when purchasing the chain, adding in more luxury brands.
He was initially hoping to keep 47 of the 59 stores open across the country but has since faced stiff competition from landlords also looking to install their shops in the empty spaces House of Fraser has left behind.
Some customers are so frustrated by the news that they have taken matters into their own hands. 
Last week we reported that a woman who had bought a sofa from House of Fraser but had not received it or been given a refund, walked into one of the department stores and removed the sofa herself. 
Despite being staff calling the police, once she showed officers her receipt, they let her drive away with the goods. 
Sports Direct's founder and chief executive Mike Ashley took aim at shareholders and the media in a statement on Friday, accusing them of stabbing him in the back.
The mogul said: 'Despite the substantial progress made over the last few years, the shareholders have now made it extremely challenging for future engagement to take place.
'On the one hand they are delighted with our performance and progress, yet with the other hand they have stabbed Sports Direct and myself in the back.
'The media circus surrounding Sports Direct only proves that whatever progress Sports Direct makes, it will always be subject to disproportionate scrutiny and misrepresentation.'

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