Homebase Administration

janeywils69

Is it right that Homebase won't offer refunds on any goods purchased since they went into administration? I bought two tins of paint in store on 13th Nov 2024 and only needed one but when I took it back to store on Saturday 16th they said they can't offer a refund.  The man in customer service gave me the head office number to call but they said that they are not giving refunds for anything.  

powerful_Rogue

Very similar thread here - https://forums.moneysavingexpert.com/discussion/6568402/homebase-refused-refund-as-in-administration-no-signage

TadleyBaggie

This was reported as so on another thread. For items bought in store there is no statutory right for refund unless faulty. Many retailers have refund policies above the statutory rights but it seems that since the administrators have taken over, the previous Homebase refund policy has been rescinded.

Mr.Generous

I suppose it's more of a concern if you spent thousands on a fitted kitchen in the last few weeks, at least it's only a tin of paint.

A_Geordie

To add to the above, just in case you (or any other HB customer) decide to sue them, you can't. Companies in administration are protected by a statutory moratorium which prevents creditors from suing without the consent of the administrator or the court.

born_again

A_Geordie said:

To add to the above, just in case you (or any other HB customer) decide to sue them, you can't. Companies in administration are protected by a statutory moratorium which prevents creditors from suing without the consent of the administrator or the court.

What would be the point of suing a company that is no longer trading?

A_Geordie

born_again said:

What would be the point of suing a company that is no longer trading?

I wasn't aware that they were no longer trading. Their website is running, shops are still open though there is rumour that "The Range" is looking to buy certain shops and intellectual property of HB including the name, that deal doesn't appear to be done. 

Do you have a source that HB has stopped trading? 

Ectophile

They were certainly trading last Friday when I was in one of their stores.

But the company is in administration.  The administrator is selling stuff off to make money for the creditors.

A_Geordie

That's true, but a company in administration does not automatically mean they cease trading. It is quite common for the administrators to continue trading until at least they have collected enough information to make a determination in the best interests of creditors, whether that is to sell off, wind the company up or to continue trading as a going concern.

But just to go back to the question born_again made about suing a company in administration, generally debt claims are contested or otherwise refused by administrators and the courts but it is not uncommon for administrators to consent to claims where there is a proprietary interest i.e. an interest in specific property or assets. For example, if someone has purchased a kitchen and all of its units and those goods are stored in a warehouse with a customer's name identified and labelled against those kitchen units, then the customer could make a proprietary claim for an order to deliver up those goods or make them available for collection. 

 

born_again

A_Geordie said:

born_again said:

What would be the point of suing a company that is no longer trading?

I wasn't aware that they were no longer trading. Their website is running, shops are still open though there is rumour that "The Range" is looking to buy certain shops and intellectual property of HB including the name, that deal doesn't appear to be done. 

Do you have a source that HB has stopped trading? 

The fact they are in Administration. They are only still open as Administrator is selling off stock to pay creditors.

Even if the range buy some stores the current version of HB has gone, even if someone buys the name. As per how Mike Ashley continues to build his empire. There is no claim again the old Homebase. 

Read the other thread linked to & how it effects them.

A_Geordie

born_again said:

The fact they are in Administration. They are only still open as Administrator is selling off stock to pay creditors.

Even if the range buy some stores the current version of HB has gone, even if someone buys the name. As per how Mike Ashley continues to build his empire. There is no claim again the old Homebase. 

Read the other thread linked to & how it effects them.

A company in administration does not mean the company has ceased trading or that are only there to sell off stock to pay creditors. An administrator has statutory objectives and the first objective is to try to keep the company running, failing that, achieve the best results for creditors e.g. cash injection from investors or a creditors voluntary agreement and worst case, they cease trading and move from administration to liquidation (another type of insolvency) to sell off assets and other stock to pay off its creditors. It is not unusual for the same individual(s) who was the administrator to then become the liquidator.

Also, I'm not sure why you suggest the current version of HB is gone because that is not true. HB still exists in its current form, it is still an active company in the eyes of the law until the company has dissolved at which point it ceases to exist. I think you may be talking about an asset sale where a company purchases the name and assets of a company and typically leaves behind the bad debt, but that hasn't happened yet as far as we know. Until then, the company continues to trade.

So, claims can still be made albeit with some limitations. Returns and refund policies have already been updated on the HB website but the point I wanted people to be aware of is that you can't just start legal proceedings without the permission of the court or the administrator as you will be wasting your time in money and costs, unless the claim relates to good already assigned to you then you might have a more successful opportunity to sue.

Personally I wouldn't be buying from a company in administration unless I physically purchase from their stores or have the added protection by ordering online such as credit card. Many companies have a slim chance of surviving when put into administration.