Missguided customers have been left furious after administrators told them they won’t receive refunds.
The fast fashion chain collapsed last month after suppliers it owed millions of pounds to petitioned for it to be wound up.
Teneo was hired by Missguided to run the administration process. Customers on social media say they’ve now been told their refunds won’t be honoured.
Shoppers typically face a battle to get their money back when a company goes bust, due to them owing money to creditors.
Mike Ashley's Frasers Group has agreed to buy Missguided in a deal worth around £20million but the sale is not expected to complete until August.
Missguided customer Emma Devlin, 30, a teacher from Teesside, told The Mirror she is waiting for a refund for £160 worth of clothes.
Are you a Missguided customer waiting on a refund? Let us know: mirror.money.saving@mirror.co.uk
She paid using a mixture of her debit card and Klarna and has been told to apply to both these payment providers to get her cash back.
We explain how this would work below.
Emma said: "It’s pretty shambolic as so many people have paid for items, returned them and lost out on all of that money.
"With the cost of living at the moment, people are needing all the money they can get.
"Missguided have pretty much taken the money with no explanation other than an apology for going into admin."
Another shopper said: "Can’t believe I sent my items back and now being told I’m not getting a refund. So now I’m without the items and down £70."
One customer took to Twitter that she was "freaking out" after being told she would not be refunded.
She shared a text from administrators at Teneo which read: "We will not be able to honour any pre-appointment refunds requested and not yet settled.
"In this case, you can make a claim in the administration process."
Teneo declined to comment on the decision not to pay out refunds.
The Missguided website is currently down with shoppers unable to browse or place orders due to “maintenance pixies”.
“Our maintenance pixies are currently working their magic on the site,” a message reads.
“We'll be back with you soon, in the meantime check out our blog or get help on an existing order through our customer care team…”
It comes a day after Frasers confirmed that it will rehire Missguided founder Nitin Passi to become the company's chief executive once the takeover it completed.
Mr Passi left the business in April as the group sought a new owner.
What happens next if you're a Missguided customer
If you've been told by Missguided that it won't refund you, you may also be able to use other methods of reclaiming your cash.
First, there is Section 75 of the Consumer Credit Act or the Chargeback scheme.
Section 75 can be used for credit card spends that have gone wrong, for purchases worth between £100 and £30,000.
This is because the Consumer Credit Act dictates that your card provider is jointly liable, as well as the company you purchased from.
Debit card payments, cheques and transfers not covered by the Consumer Credit Act might qualify for the Chargeback scheme instead.
Sadly this isn’t enshrined in law, so there is no guarantee you'll get your money back.
You'll need to contact your bank or card provide to start either process.
Buy Now, Pay Later customers should speak to their lender and ask if they can sort out a refund.
