Missguided will not refund customers, administrators confirm

theguardian.com:

Customers of the collapsed fast fashion retailer Missguided will not receive refunds for returns, administrators of the business have confirmed.

It comes after the Manchester-based company tumbled into insolvency last month after racking up millions of pounds in outstanding payments to creditors.

Two weeks ago, Mike Ashley’s Frasers Group sealed a deal, worth about £20m, to buy the business and assets of Missguided, as well as its sister brand, Mennace.

However, Teneo, which was hired by Missguided to run the administration process, has told existing customers it will not be able to honour refunds as part of the insolvency process.

Typically, customers are often among the last on the list of creditors to receive repayments if a company goes bust.

Missguided shoppers aired their frustrations on social media.

One customer said on Twitter that she was “freaking out” after being told she would not be refunded.

She shared a text from the 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 administrators and company are also coming under pressure from customers over delayed deliveries after the collapse.

Frasers’ deal to buy Missguided is expected to be completed in August.

It comes a day after Frasers confirmed it will rehire the Missguided founder, Nitin Passi, to become the company’s chief executive once the takeover is completed.

Passi left the business in April as the group sought a new owner.