Sports Direct chief executive Ashley said at the time: "We will do our best to keep as many stores open as possible".
A source close to Sports Direct told The Guardian it had been forced to cancel orders as XPO was being "totally unreasonable in terms of their demands" and was "refusing to engage in any process" which would "move the situation forward".More news: Emery 'happy without the result' as Arsenal comeback falls short
"Please accept our apologies for any inconvenience caused and thank you from everyone at House of Fraser for your patience at this time".
"Due to delays with delivering online orders, we have taken the decision to cancel and refund all orders that have not already been sent to customers".
In a statement, which does not mention XPO Logistics, Sports Direct said: "Since the acquisition, the group has started meeting with various House of Fraser suppliers and concessions". "I paid for delivery and the money was taken out of my account".More news: Amazingly preserved remains of 99 MILLION-year-old beetle found in amber
As a result, the retailer has cancelled all online orders and is refunding customers.
This will be good news for the employees of House of Fraser, as it looks likely that most - if not all - of their jobs will saved.
"I made an order on Sunday and still haven't received my order", said one person on Twitter. Yes a week ago for my daughters birthday.More news: Chilean angry at airline over lost luggage allegedly behind bomb threats
Customers had been complaining about missing and delayed deliveries following the chaos of the past few days where a number of fashion brands with outstanding debts have withdrawn their stock while negotiations continue over payment. "If not can I have my money back so I can shop somewhere else". We don't now have a timescale for delivery.