Missguided customers will not get refunds for returns at the moment, the administrators of the failing fashion firm said.
The company collapsed in May, i exclusively revealed, after suppliers complained Missguided had not paid them.
Now Teneo, which is running the business until new owner Frasers Group takes over, said the business is unable to honor refunds to customers, according to the BBC.
When businesses fold, customers are advised to get the details of the administrator or receiver to make a claim to get their money back.
Administrators will try and collect any assets, sell what they can, and then distribute whatever cash remains to creditors.
Secured creditors will be paid back first followed by insolvency practitioners. After that employees will be paid and with whatever money is left, customers will get their refunds or any money owed.
This means they are often the last to get their funds back – if at all.
Instead, consumers are encouraged to try and get their money back through their bank.
i reveals how you can claim your money back.
How to claim your money back
It is suggested that consumers write to the administrator that’s managing the collapsed firm – in this case, Teneo – stating exactly what you are owed and what for.
As they have said, currently, consumers won’t get refunds, it is then worth trying other methods.
For those who paid on credit card and the order cost more than £100, you can submit a Section 75 claim.
This means your card provider is legally obliged to act if you don’t get the goods or services you paid for.
Alternatively, if you paid on debit or credit card and the order costs less than £100, you are also able to submit a chargeback claim.
This means you can ask your bank to reverse a transaction in order to get your money back. You normally have 120 days from when you paid to submit a claim.
If you used a buy-now-pay-later scheme contact your provider for a refund.
To find out more about your rights, click here.
What happened with Missguided
Missguided entered administration at the end of May, leaving hundreds of jobs at risk and countless orders unfulfilled.
The firm’s collapse comes days after i revealed Missguided owed suppliers millions of pounds and some angry creditors even turned up at its Manchester headquarters to demand payment.
Teneo took on the role of the administrators before the fashion company was bought by Mike Ashley’s Frasers Group.
Michael Murray, Frasers Group chief executive, said: “Missguided is a fantastic brand which, with the strength and scale of Frasers’ platform and our operational excellence, is well-positioned for the future. Under Frasers’ ownership, and with Nitin’s partnership, Missguided has an exciting future ahead.”
But customers have been taking to social media for weeks to say they have been unable to get through to Missguided with many not receiving refunds for returns they have made.
Despite this the company is still accepting orders with the Frasers Group even reinstating Nitin Passi, the former CEO, after he previously stepped down in April.