Snug Sofas - not getting my sofa or a refund!

stitchmaker85

Received an email today from Snug sofas whom I placed an order with at the end of November advising me that they have been bought by SCS and are unable to provide me with either my sofa or a refund.
My payments were through Dividebuy who I have paid 2 payments to so far but their online chat are unable to give me any further information other than the fact they will take 14 days to investigate. Feeling so stressed at the thought of not getting my sofa but still having to make payments on it.
SCS who are contacting customers of Snug have just told me to email the administrators but not sure what this will mean to be honest. 

dreamypuma

I am sure someone more knowledgeable in these matters will reply to you soon. 

It sounds like Snug Sofas have gone into administration, and SCS are in the process of buying the business / order book or assets. They are probably right in referring you to the administrators, who will in due course contact all creditors with details on next steps.

You seem to have taken out a credit agreement for your sofa, (so take some comfort in this being a positive thing) - keep paying the instalments. Dividebuy are likely to be jointly liable for any issues with this sale under Section 75 of the Consumer Credit Act.

I'm assuming this is quite concerning for you, so hopefully my reply bumps you post a gets you a more detailed reply from a regular. Meanwhile hopefully it puts your mind at ease a little.

Alderbank

dreamypuma said:

You seem to have taken out a credit agreement for your sofa, (so take some comfort in this being a positive thing) - keep paying the instalments. Dividebuy are likely to be jointly liable for any issues with this sale under Section 75 of the Consumer Credit Act.

No, Dividebuy are extremely unlikely to be jointly liable for any issues with this sale...

They are a Buy Now Pay Later outfit like Klarna or Laybuy. Their website makes it clear that Dividebuy credit agreements are not regulated by the Financial Conduct Authority and do not fall under the jurisdiction of the Financial Ombudsman Service.

StopperSays

I'm in a similar situation, and have been told that the sofa won't be delivered and they won't offer a refund.

Originally ordered in October 2022, and paid through PayPal.
Delivered incorrect sofa in November 2022
I was offered a replacement sofa to be delivered in March 2023
Contacted yesterday to say that they had gone into administration, were bought by SCS and that the sofa wouldn't be delivered and no refund was offered.

On PayPal it says I have 180 days to dispute the payment, and I'm currently around 100+ days from the original transaction.

What are my chances of receiving a refund?

HillStreetBlues

StopperSays said:

I'm in a similar situation, and have been told that the sofa won't be delivered and they won't offer a refund.

Originally ordered in October 2022, and paid through PayPal.
Delivered incorrect sofa in November 2022
I was offered a replacement sofa to be delivered in March 2023
Contacted yesterday to say that they had gone into administration, were bought by SCS and that the sofa wouldn't be delivered and no refund was offered.

On PayPal it says I have 180 days to dispute the payment, and I'm currently around 100+ days from the original transaction.

What are my chances of receiving a refund?

Paypal can be a  law unto itself, but you should get your money back via Buyer Protect,
Make sure you fully fill out the form and submit all evidence.

born_again

Non receipt of refund, via PP, if you have proof of return.

Alderbank

Does Dividebuy (parent company Rematch Credit Ltd) offer the same protections as PP?

Londonvictoria

I am in the same boat. Ordered in October, was due delivery in two weeks. £1500 down. Paid debit card, so no immediate right to have it reimbursed by the bank (has submitted a request). The company was taking orders right up until the day they sold, and they stated that they'd been planning this for a while, so they knew full well this would happen. It's absolutely disgusting. The sofa that I ordered to be made that was due for delivery will now be sold to someone else!

Londonvictoria

Also, why would Snug Shack limited still be listed as Active on companies house, and not register having gone into administration?

Aylesbury_Duck

Londonvictoria said:

I am in the same boat. Ordered in October, was due delivery in two weeks. £1500 down. Paid debit card, so no immediate right to have it reimbursed by the bank (has submitted a request). The company was taking orders right up until the day they sold, and they stated that they'd been planning this for a while, so they knew full well this would happen. It's absolutely disgusting. The sofa that I ordered to be made that was due for delivery will now be sold to someone else!

Whilst of no help to you, what do you expect them to do?  They'll keep on trading whilst they try and rescue the company, but also puts them in a better position for a rescue if they have a full order book.

If every business that was at risk of going under stopped trading, they'd all certainly go under.

ThumbRemote

Aylesbury_Duck said:

Londonvictoria said:

I am in the same boat. Ordered in October, was due delivery in two weeks. £1500 down. Paid debit card, so no immediate right to have it reimbursed by the bank (has submitted a request). The company was taking orders right up until the day they sold, and they stated that they'd been planning this for a while, so they knew full well this would happen. It's absolutely disgusting. The sofa that I ordered to be made that was due for delivery will now be sold to someone else!

Whilst of no help to you, what do you expect them to do?  They'll keep on trading whilst they try and rescue the company, but also puts them in a better position for a rescue if they have a full order book.

If every business that was at risk of going under stopped trading, they'd all certainly go under.

They haven't tried to rescue the business though. They planned to go into administration and had already identified the buyer. They don't reveal at what point they began talks, but to plan administration while still taking orders seems verging on fraudulent to me. 

https://snugsofa.com/pages/trading-update