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Missguided shoppers will not receive refunds on returns, say administrators

Missguided’s administrators has told shoppers they will not receive refunds for returns (Missguided/PA)
Missguided’s administrators has told shoppers they will not receive refunds for returns (Missguided/PA)

Administrators for collapsed fast fashion retailer Missguided have told shoppers they will not receive refunds for returns.

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 around £20 million, to buy the business and assets of Missguided, as well as 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 took to social media to air their frustrations.

One customer said on 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 administrators and company are also coming under pressure from customers over delayed deliveries following the collapse.

Frasers agreed to buy Missguided earlier this month but the sale is expected to complete in August.

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.