Paul Simon administration query

Worried1976

Hi everyone
I posted this a couple of weeks ago in the wrong place so trying again! I bought a sofa from paul Simon 3 days before it went into administration. I paid £130 on credit card (deposit) and the remaining £400 was on interest free credit. The sofa will not be delivered so I tried to cancel the agreement with the finance company but was told they cannot cancel whilst they are looking into it and deciding how to respond. The agreement (payments) don't start until after delivery so I'm currently only £130 out of pocket. I'm a bit confused by the section 75 stuff - should I contact the credit card people now and ask for the £130 back? Or do I wait until I know what's happening with the finance company and then try and claim for the whole amount if necessary? Do I have to wait until the administrators have done their thing incase I get anything back that way?
Any help from a money minded individual gratefully received!
Thanks, Kerry

hollydays

TJ Hughes owner buys seven Paul Simon stores from administration
2 May, 2014 | By Ben Cooper

TJ Hughes owner Lewis Home Retail has acquired seven Paul Simon stores out of administration.

It is understood Lewis Home Retail will rebrand at least some stores to TJ Hughes. The deal has saved 73 jobs.

However, administrator Deloitte confirmed that eight other shops would be closed with the loss of 59 jobs, following five closures in April.

Deloitte is continuing to market Paul Simon as a going concern, and is seeking buyers to pick up either the brand or the remaining 30 stores in the chain.

“We are pleased to have some good news during the administration of Paul Simon,” said Deloitte partner Lee Manning. “However, this is not a sale of the brand and we will see clearance sales at the closing stores. This market remains challenging, especially for out of town retailers, and the increasing importance of online sales caused an erosion of margins.”

Paul Simon, which was trading out of 51 stores before its collapse, filed for administration at the beginning of April after flooding at the start of the year severely hit sales at the business.

Stores that have been bought by Lewis Home Retail:
Colindale
Chelmsford
Edmonton
Harlow
Hayes
Lakeside
New Malden
Latest stores that are to be shuttered:
Reading
Worthing
Gillingham
Ashford
Enfield
Beckton
Slough
Bristol
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wealdroam

Worried1976 wrote: »

Hi everyone
I posted this a couple of weeks ago in the wrong place so trying again! I bought a sofa from paul Simon 3 days before it went into administration. I paid £130 on credit card (deposit) and the remaining £400 was on interest free credit. The sofa will not be delivered so I tried to cancel the agreement with the finance company but was told they cannot cancel whilst they are looking into it and deciding how to respond. The agreement (payments) don't start until after delivery so I'm currently only £130 out of pocket. I'm a bit confused by the section 75 stuff - should I contact the credit card people now and ask for the £130 back? Or do I wait until I know what's happening with the finance company and then try and claim for the whole amount if necessary? Do I have to wait until the administrators have done their thing incase I get anything back that way?
Any help from a money minded individual gratefully received!
Thanks, Kerry

Both the finance company and your credit card company are equally responsible, together with the seller, for performance of the contract.

I would not expect either of those financial organisations to refund anything until it has been confirmed that you will not get the goods.
Write to the administrators seeking that confirmation, then claim the missing money from either of the financiers.

I guess you have read MSE's Section 75 Refunds article, but it might be worth reading their Administration Guide too.

arcon5

Administration is very different from liquidation. It merely allows certain protections from certain actions by creditors whilst an organisation is in administration and being managed by experts whom will seek to sell on the business as a going concern or if necessary push it in to liquidation.

There's still the prospect they will come out of administration and continue trading, fulfilling contracts with it.

Section 75 isn't a fast track get your money back scheme, it protects you though. So rest assured you won't lose any money - but may need to ride the wave a little.

Getting something in writing from the administrators, as mentioned above, is a good idea though as it could speed things up.

rustyboy21

IMO, you seem to be in a good, safe position. You have deposit paid by credit card and is over £100 and you have finance on the rest.


It will take sometime and you may still get your furniture, but you shouldn't lose out any money.


It is people who paid cash deposits or in full, who may have to worry.

agrinnall

rustyboy21 wrote: »

IMO, you seem to be in a good, safe position. You have deposit paid by credit card and is over £100 and you have finance on the rest.

Actually the position would have been the same if the OP had paid 13p by credit card, it's the cost of the item that has to be over £100 to get S75 protection rather than the amount put on the credit card.

PS I accept that you may have meant that, so I'm clarifying for anyone else who doesn't know it.

anokayperson

returned faulty curtains to store but was told the refund had to come from the head office. 2 months on and I am still waiting. Is anyone else waiting for their refunds please as the stores that are still trading are now under the 'lewis' brand - thanks