Customers of the collapsed Missguided fast fashion store will not receive refunds for returns, business administrators have confirmed.
It comes after the Manchester-based company went bankrupt last month after accumulating millions of pounds in outstanding payments to creditors.
Two weeks ago, Mike Ashley’s Frasers group sealed a deal worth about £ 20 million to buy Missguided’s business and assets, as well as its sister brand, Mennace.
However, Teneo, which was hired by Missguided to run the administration process, has told existing customers that it will not be able to pay the refunds as part of the insolvency process.
Customers are usually among the last on the list of creditors to receive repayments if a business fails.
Disoriented shoppers expressed their frustrations on social media.
A customer said on Twitter that he was “scared” after being told he would not be reimbursed.
He shared a text from Teneo’s administrators, saying: “We will not be able to attend to any refund of the requested appointment that has not yet been settled.
“In this case, you can file a complaint in the administrative process.”
Teneo declined to comment on the decision not to pay the refunds.
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Administrators and the company are also under pressure from customers for delays in post-collapse deliveries.
The Frasers deal to buy Missguided is expected to be completed in August.
It comes a day after Frasers confirmed that he would re-hire Missguided founder Nitin Passi to become the company’s CEO once the acquisition is complete.
Passi left the business in April when the group was looking for a new owner.