Customers of the collapsed Missguided fast fashion retailer will not receive a refund, business administrators have confirmed.
This comes after the Manchester-based company went bankrupt last month after accumulating millions of pounds in unpaid payments to creditors.
Two weeks ago, Mike Ashley’s Frasers Group struck a £ 20m deal to buy Missguided’s business and assets, as well as its sister brand Mennace.
However, Teneo, which was hired by Missguided to manage the administrative process, told existing customers that it would not be able to carry out the recovery as part of the insolvency process.
Customers are often among the last on the list of creditors to receive payments if a company goes bankrupt.
The wrong buyers spread their disappointment on social media.
One customer said on Twitter that she was “crazy” 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 fulfill the requested and still unsettled refunds of pre-appointment.
“In this case, you can file a lawsuit in the administrative process.”
Teneo declined to comment on the decision not to pay refunds.
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Administrators and the company are also under pressure from customers due to delayed deliveries after the collapse.
Fraser’s deal to buy Missguided is expected to close in August.
This comes a day after Frasers confirmed that it will hire Missguided founder Nitin Passy again to become the company’s chief executive after the takeover is over.
Passy left the business in April as the group sought a new owner.
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