Misguided refusing refunds

Pollycat

The MSE article I linked to was created 31/5/2022 and updated 1/6/2022 (when Mike Ashley's Fraser Group bought Missguided out of administration).
It says 

Your return rights won't be affected by the company going into administration while it's still trading, and at the time of writing, Missguided's refunds and returns portal was operating as normal. 

Maybe the OP can say what date in May her daughter returned the goods.

born_again

jon81uk said:

born_again said:

Time that Mike Ashley & his group that buy up all these names under packaged deals from administrators had to deal with previous customers refunds.

Have you ever tried getting a refund from Sports Direct!

I nearly added that comment on the end.... 🤣

Sandtree

born_again said:

Time that Mike Ashley & his group that buy up all these names under packaged deals from administrators had to deal with previous customers refunds.

So you'd rather all the staff become redundant and the customers still dont get refunds because its no longer a viable thing to buy.

born_again

Sandtree said:

born_again said:

Time that Mike Ashley & his group that buy up all these names under packaged deals from administrators had to deal with previous customers refunds.

So you'd rather all the staff become redundant and the customers still dont get refunds because its no longer a viable thing to buy.

No. But it should not be hard for a change to say anyone taking over a name (as that is all they have taken over) also take on previous orders.

Many staff were sacked, on the same day as MA bought the name.

Sandtree

born_again said:

Sandtree said:

born_again said:

Time that Mike Ashley & his group that buy up all these names under packaged deals from administrators had to deal with previous customers refunds.

So you'd rather all the staff become redundant and the customers still dont get refunds because its no longer a viable thing to buy.

No. But it should not be hard for a change to say anyone taking over a name (as that is all they have taken over) also take on previous orders.

Many staff were sacked, on the same day as MA bought the name.

But that's the point... the company is insolvent, if it can only be bought as an ongoing concern such as with the debts owed to customers then in most cases no one would buy it and hence all jobs lost and no refunds to customers.

born_again

I get what you are saying. But administrator could add this into the packaged sale, that covers previous retail customers.

As MA only bought the "intellectual property" not any physical property. Jobs were lost.

Sandtree

born_again said:

I get what you are saying. But administrator could add this into the packaged sale, that covers previous retail customers.

As MA only bought the "intellectual property" not any physical property. Jobs were lost.

Administrators have a legal duty to the creditors (which will include unsecured creditors like customers) to maximise the potential repayment of the debt owed to them. The administrators therefore will have to weigh up the value of selling it without any liability or with some/all and the amount raised.

Clearly if they can sell it as a going concern then that will always be the most likely best outcome as long as the buyer has a realistic plan and financing for turning the business around. The reality is that this is fairly uncommon unless you are talking about a major supplier or partner taking it on where there are large synergies that are easy to identify (as per the newsagents recently).

If they can get more for it by breaking it up and selling parts and the total impact to creditors is that less is written off then that's their obligation. 

If you feel the current model is wrong then really you should also be arguing with the pecking order in which debts are considered as customers are at the bottom with other unsecured creditors with HMRC, employees etc above them. 

With the chargeback process, as you well know, many will get their monies back having paid by cards and the banks take their place as the one with the losses.

user1977

born_again said:

But administrator could add this into the packaged sale, that covers previous retail customers.

They could if they want. They have no obligation to do so. I don't see why customers trying to change their frocks ought to rank above employees, suppliers, etc.

TripleH

The money the administrators received for selling on will be used to pay creditors.

If the option is sell intellectual property rights for £500,000 and pay £0.10 in the £ on £5,000,000 of debts or get £nil and let it all die away then they will get the £500,000 and would be failing in their duty otherwise. Sadly businesses fail, people go bankrupt / loose out through no fault of their own.

Pollycat

Missguided shoppers left out-of-pocket after the fashion brand failed won't get their money back, say the administrators winding up the company.

Teneo, which is running the business until new owner Frasers Group takes over, said the company won't be able to honour refunds to customers.

Missguided shoppers will not get refunds for returns - BBC News