Missguided collapse could leave thousands of customers out of pocket

theguardian.com:

Thousands of Missguided customers could be left out of pocket as administrators are not expected to pay refunds that were applied for before they were called in on Monday and deliveries of orders are not guaranteed.

The online fashion retailer’s website gradually closed down on Wednesday, including access to customer services, after a£20m deal to acquire the brand was agreed with the Sports Direct owner, Frasers Group.

The Guardian understands that administrators from the advisory firm Teneo, who are to operate Missguided for the next weeks under the deal with Frasers, are not in a position to pay refunds requested before they were appointed on Monday. Deliveries of goods already ordered are also not guaranteed amid negotiations with GXO, the operator of Missguided’s warehouse in Trafford Park, Manchester.

Many shoppers complained on social media that they could not get information about their orders.

One customer who said they were waiting for refunds on three items questioned why the website had continued to operate on Monday and Tuesday. “Why are they still selling stuff when they are not even honouring refunds and current orders.”

Another said they had been told there was an “IT issue” at Missguided’s warehouse so refunds could not be processed.

A further customer added on Wednesday: “I was assured my two parcels would be delivered yesterday, still nothing.”

Frasers bought the brand and other assets for £20m. The initial deal is not thought to include Missguided’s stock and warehouse operations but will save the jobs of almost 150 head office staff.

Frasers is expected to integrate the brand into its own warehouse operations, which are run from Shirebrook in Derbyshire.

One worker at the Missguided warehouse said workers had