Administrators for Missguided have confirmed that customers awaiting refunds for returns will not be repaid, after the business was purchased by the Frasers Group out of administration. Many shoppers had hoped that they would receive refunds as usual after the business was taken over by the owners of Sports Direct, but administrators Teneo confirmed that the company faced a shortfall of assets and consumers may not receive any payments at all from the administration.
So what can customers do when their refund has not been honoured by an insolvent company?
Customers who placed orders by credit card (costing £100 or more) can claim for a refund from their credit card provider under section 75 of the Consumer Credit Act 1974. This provision makes credit card providers jointly and severally liable for purchases made within the threshold values set out. The same protection does not apply to orders under £100 or paid by debit card. However, some debit and credit card providers (such as Visa) offer a chargeback service on purchases of up to £100 for goods or services not delivered, even though there is no statutory obligation for them to do so.
We recommend checking with card providers about any protection or assistance that can be offered, which is likely the best route for these customers to obtain a refund following the administration. Otherwise, customers claiming refunds will rank as unsecured creditors in the administration and can often expect to receive nothing.