Missguided customers told they will not receive refunds after Manchester retailer's sale
Shoppers have been told they will not receive refunds for returns after fast fashion retailer Missguided collapsed.
Teneo, which was hired by the online brand to run the administration process, says it is unable to honour refunds for existing customers as part of the insolvency process.
The shop, founded in 2009 by Nitin Passi, sells clothes and accessories across 180 countries and quickly became one of the UK’s biggest online fashion retailers.
But Manchester-based Missguided, and its menswear brand Mennace, went bust in May after its suppliers filed to shut it down over millions of pounds in unpaid debts.
At the beginning of June Mike Ashley’s Frasers Group sealed a deal, worth around £20 million, to buy the business and assets of Missguided and Mennace.
But customers are often among the last on the list of creditors to receive repayments if a company goes bust.
Missguided shoppers have been sharing their frustration on social media after being left out of pocket and failing to get a response from the company.
One customer said when she tried to get a refund, she found Missguided systems were 'down', suggesting that was convenient for the company.
Others have shared a text from administrators at Teneo : "We will not be able to honour any pre-appointment refunds requested and not yet settled.
"In this case, you can make a claim in the administration process."
Teneo has declined to comment on the decision not to pay out refunds.
The administrators and company are also coming under pressure from customers over delayed deliveries following the collapse.
Frasers agreed to buy Missguided, but the sale is expected to complete in August.
It comes a day after Frasers confirmed that it will rehire Missguided founder Nitin Passi to become the company’s chief executive once the takeover is completed.
Mr Passi left the business in April as the group sought a new owner.
What can customers do to get their money back when a company goes bust
If your purchase was more than £100 and you paid on credit card, submit a "Section 75 claim" from your provider or bank - your card provider is legally obliged to act if you don't get the goods or services you paid for.
If you used a buy-now-pay-later scheme, such as Klarna and AskPayPal contact your provider for a refund.
If you paid by debit card ask your bank for "chargeback" within 120 days of the payment - this is where you can ask your bank to reverse a transaction in order to get your money back.
Missguided is still trading but experts, such as Moneysavingexpert.com warn customers who are still considering placing an order to pay with a card to get additional rights, if orders stop being honoured.