MSE News: Missing cash fears after Focus DIY administration

aldredd

PaulJC wrote: »

This is EXACTLY what happened to me, I ordered a patio set on Saturday (some items were taken then as were in stock), went in again yesterday to collect the remainder of the order and they wouldnt let me take it.

It makes you mad that you have paid for it but arent allowed to take it. I wonder if you could actually be arrested if you walked out with it. And is it a criminal or civil matter? :mad:

Thankfully, this hasn't happened to me before - but if it did, and they were refusing to give me the goods - but could see them / they now had it in stock - I would have no second thoughts on taking it off the shelf and walking out with it - daylight robery this - I really feel for those impacted by this. makes me mad :mad:

jobless101

BDMR wrote: »

I have some vouchers to use at Focus but I have no idea yet what I want to use them on! I don't want to just waste them on something I don't want! What am I best to do? Are they still accepting vouchers does anyone know? :eek: Thanks

Yes they are accepting vouchers, but get in there asap as things are changing everyday.
from a propably former employee!

jobless101

I work for Focus, though probably not for much longer! they are still accepting vouchers but you should get in there asap as i dont know how long that will last.
The reason they will not let you all have the goods is as of yesterday 5 may 2011 focus no longer own the stores or the stock so if they let you have your goods or money they would effectivley be stealing as they no longer own it, ernst and Young do! please do not have a go at me, as I have had it for two days! I too have goods on order and cannot get them and I am probably going to loose my job as well. I believe some talks are in progress to see if there are possibilities that can help people, if that were to happen it would only be for any products thats are in stock as we are not allowed to order anything.

aldredd

jobless101 wrote: »

please do not have a go at me, as I have had it for two days!

Don't worry - no one in their right mind would be blaming the store staff for this (even if customers are taking it out on them - which is kind of understandable). You're as much a victim (well, more so really I guess) of this as customers who's money has been taken.

Alan_M_2

tifo wrote: »

I'm talking about banks, not Ltd companies. Because it's banks that refund the money, not the retailer.

If a section 75 or chargeback is processed the money is automatically removed from the retailers bank account.

The bank doesn't pay - it administers the system.

The retailer pays.

John_Pierpoint

corbyboy wrote: »

What's the rationale behind not delivering people's orders? If the stores are still trading they must still be buying and selling stock. Why are they allowed to do this?

You have to get your head round the situation.

An administrator has been appointed.

A line in the sand has been drawn.

The administrator can continue trading, if he thinks that is in the interests of the creditors (there is a hierarchy of creditors with identities such as banks (because they have taken security against the assets) the employees, HMRC etc. at the top and ordinary trade creditors near the bottom.)

Some suppliers will have sold goods to Focus with as clause that says these goods only become the property of Focus when payment is received, the suppliers will be trying to snatch back their goods.
(But you have to identify them and you cannot deliver pigs and snatch back sausages).

It obviously makes sense to sell stuff already in the warehouse and the shops for cash to members of the public, including uncollected BBQ's.

On the supplies front, many suppliers may be prepared to continue trading with invoices raised as "The administrator........... Ernst & Young of
Focus DIY ............................",

These are the terms for buyers to continue trading with "Focus in administration......." in the probably vain hope that the administrator can find a buyer for the nearly dead company (soon to be renamed "The receiver and manager of "Focus... in liquidation)" ??

Existing customer orders

• Goods for existing customer orders may only be collected from store if the customer:
  • Has paid for the goods; and
  • Holds a valid receipt for those goods; and
  • Has been advised by the store that the goods are in stock and have been reserved for customer collection.

• Goods for existing customer orders where a deposit has been paid may only be collected from the store if:
• The customer has been advised by the store that the goods are in stock and have been reserved for customer collection; and
• The deposit paid is not more than 5% of the purchase price; and
• The full balance of the purchase price is paid.
• At this stage we cannot deliver goods where customers have placed orders for home delivery.
• At this stage we are unable give a refund on any outstanding customer orders.

Please advise us in writing at the address below of any outstanding orders that you have.
Customer returns

• Goods purchased prior to 5 May 2011 are only eligible for a like for like exchange, up to the value of the goods.
• Goods purchased from 5 May 2011 onwards are eligible for a like for like exchange, no refunds can be given unless goods are faulty.

http://www.furleypage.co.uk/services-for-business/debt-recovery/frequently-asked-insolvency-questions/

http://www.independent.co.uk/news/business/news/focus-diy-falls-into-administration-as-debt-crisis-mounts-2279084.html

I think this will pan out just like "Woolies", especially if they are already trying to sell the fixtures and fittings in the shops!

John.

Stop press: Focus is being broken up:

http://www.stockmarketwire.com/article/4140499/Kingfisher+buying++up+to+31+former+Focus+DIY+stores
http://www.independent.co.uk/news/business/news/bampq-owner-buys-31-focus-diy-stores-2280157.html

asbokid

In 2007, the Focus DIY chain was bought, warts and all, by Cerberus, the private-equity firm, for a quid.

The City uses Cerberus to eliminate bit-players from overcrowded sectors. Focus DIY was always struggling in a hard-pressed home improvements market, and Cerberus was sent in to slit its throat.

Also in 2007, Cerberus bought most of Chrysler Autos from Daimler Benz. Two years later and Chrysler, the number three yankee carmaker, was forced through Chapter 11 bankruptcy reorganisation.

The once great name in Detroit, founded in 1925, is gone in all but name now, swallowed up by FIAT, the Italian marque. Naturally FIAT has shown no interest in guaranteeing the $20 billion Chrysler pension fund liabilities. The wretched Chrysler pensioners can swivel.

Cerberus also bought GMAC, the finance arm of General Motors. GMAC is famous for the exceedingly dodgy car loans that it made to subprime borrowers at the height of the consumer credit bubble.

The true toxicity of those Cerberus/GMAC car loans was disguised by parcelling them up into collateralised debt obligations (CDOs), ready for sale.

And indeed, it was Cerberus's subsequent sale of GMAC's toxic CDOs, also known as ass-backed paper (ABP), to several Great British building societies, that was to seal the fate of those mutuals.

The Cheshire and The Derbyshire BS, and other sucker-societies fell by the wayside, thanks to the enormous swindle that was pulled off by Cerberus/GMAC which dumped its toxic CDOs into the Great British mutual sector.

The City of course has always loathed the mutuals. Owned by the little people, the Building Societies are anathema to the international financier oligarchy.

The City has been striving for many years to tighten its hegemonic grip of the retail banking sector by eradicating the competition. That has included the consolidation and obliteration of smaller building societies.

As such, the City with a few accomplices secreted within the boardrooms of target building societies, loaded up the mutuals with toxic CDOs, courtesy of Cerberus/GMAC. The conspirators stood back and watched the CDOs unravel and the societies tumble!!

R.I.P. Derbyshire and Cheshire - murdered in cold blood by Cerberus/GMAC and The Enemy Within.

As for Focus, with Cerberus at the helm, it had its heart ripped out. So it comes as no surprise that the chain has finally slithered down the pan. What is a shock is that the demise took so long. It has been agonising to watch. The 4,000 Focus staff who find themselves on the slagheap are the real victims here. What of the pension liabilities, too?

On a last point, the name Cerberus comes appropriately from the three-headed dog in Greek mythology which guarded the gates of Hades (Hell)!

flexrider

Anon wrote: »

I may be being thick, but why should customers have to contact them with proof of order - they have an ordering system that knows fine rightly who has ordered what and when it is due (unless someone has maliciously wiped the computer system)!

100% correct and no your not being thick! they have the same systems as Asda walmart stores have when you ring Asda and they ask you the 4 digits to what card you used for purchased items it tracks the sale right away. Hence that is why Asda has purchased some of the retail stores of focus according to BBC news but not all stores just a handfull

For stacyjmann it appears to be a different situation - it wasn't ordered for delivery, it was simply left there for safekeeping and therefore "ownership" had already passed to the customer?

Not entirly true after working myself for B&Q a long time ago in my student days yes you are correct on the ownership part but if you walked into my shop today(If i had a shop that is) and purchased a item then said you would be back with a van it is the shops duty to keep that item in Holding for so many days after that they would have to issue some form of credit to the customer if they have paid with proof of purchase, Hitchens before they went bust used to be a good example for this as you could place your items on a some sort of scheme and if you did not pick or finish paying you would lose your money and items also and be refunded with a value of a credit note to be used in store

To the original op
I have been in your position over a television back in 2007 with Hitchens before they went bust(not sure on date but it did happen) there are 3 possibile options
1). threaten them with the sales of goods act and ask for refund however most stores like B&Q agros,Focus,Wicks ect, Have 20 or 30 day sales terms included for refund. best to check and
2)contact your bank and ask them to reveral the charge if you bank with the following your protected on your card dependiing on the account you have very hard to do as banks hide behind the chip and pin an have the attuide of "well you used your card....your fault" sometimes

1. lloyds TSB
2. Santender
3. Halifax
4. HSBC
5. Barclays

2.)All these banks are signed up for protection services on debit card (some charge on additional accounts i know lloyds Tsb with a basic bank account have this feature being a x customer of them they helped me 2 years ago with a fraudster online) Santander have average protection but crap customer services. The bank can reversal a charge but of haggling to do so but can take up to 12 weeks to get sorted if you threatning them with the finicial ombudmans ect,

3. none of them work then its a worded letter to head office of Focus operations with step one i mentioned and a copy of your receipt/bank statement which shows the tranactions and asking for either the money or the goods!

Please note these are simple suggestions: I am not a lawyer and i expect peoples judgement's to be kept to themselves if you do not agree with any of what i wrote do not attack me! im just trying my best to help out so cut a guy some space please! to the op its best to seek some advice from someone professional if all else fails and i wish you luck.

tifo

Alan_M wrote: »

If a section 75 or chargeback is processed the money is automatically removed from the retailers bank account.

The bank doesn't pay - it administers the system.

The retailer pays.

Yes, but you don't raise a claim through the retailer but the bank .... whether the retailer has signed up to the scheme is irrelevant as the bank would have. Of course, any agreement between a money facilitator and a retailer are their separate matter and nothing to do with the consumer or the bank. Each works to its own agreements.

And ONLY s.75 CCA is enshrined in law, everything else is a commercial agreement so other laws apply

jobless101

As of yesterday 5 pm Kingfisher aka B&Q our buying 31 of the stores providing all conditions are met! Customers who paid by credit card will be covered with their credit card company. Unless talks have progressed since yesterday 6pm refunds will only be given if item is faulty, if not like for like as other people have said but only with reciept, no reciept no refund!. Again as of yesterday 6pm no orders will be fulfiled and no payment returned. As I said before they are trying to work something out with Administarters and top managers but I haven't heard anything yet. Please be aware that managers of these stores new nothing about this until we employees did on Wednesday, we were told we were going into Administration the next day! I am sure the people at the top must have known something was going on but they did not tell the GSMs (general store managers) until 9am on Wednesday, please don't have a go at them they really didn't know! and have been seriously insulted and threatened, along with the pressures we already have this is so unfair. I understand peoples anger totally, as I said before I am one of those customers.