(Reuters) – UK’s GMB Union condemned the loss of 627 jobs from global freight transportation and warehousing company XPO Logistics Inc (XPO.N) at its House of Fraser warehouse.
Members of staff were put on a 45-day consultation period from Friday, the union said.
The union criticized tycoon Mike Ashley for putting jobs at risk at the British department store group.
Ashley controls British sportswear retailer Sports Direct International Plc (SPD.L), which had snapped up House of Fraser from the department store group’s administrators for 90 million pounds ($115 million) earlier in August.
Media reports had suggested earlier that the step from XPO Logistics, a supply chain partner of House of Fraser, was the result of its dispute with Sports Direct.
XPO Logistics declined to comment.
Earlier on Monday, British luxury bag maker Mulberry Group Plc (MUL.L) said it would take a 3 million pound hit from the collapse of House of Fraser, adding that its full-year profit would be materially reduced.
Reporting by Kanishka Singh in Bengaluru; editing by David Evans