Online fashion retailer ‘Missguided’ went bust last month and went into administration. Mike Ashley’s ‘Fraser Group’ swiftly purchased the brand at the start of June for £20m.
The administrators have now announced that shoppers who purchased prior to the Ashley deal will not receive refunds for returns. You have now been asking me if this is legal and why the Fraser Group is not responsible for the debts following its purchase of the brand. Here’s all you need to know:
The Ashley deal
The Fraser Group effectively acquired the Missguided brand and key assets, so cherry picked what it wanted. The purchase therefore excluded the debts, meaning if you are entitled to a refund or any other remedy in relation to a purchase made prior to the Ashley deal, your claim will be with the administrators.
The job of the administrators is to take control of the business and to maximise the return for creditors, in this case the suppliers of Missguided that have not been paid and shoppers entitled to refund and other remedies. Here the administrators have raised £20m from the Ashley sale but this will go nowhere near covering the debt of the business, which is believed to run into tens of millions of pounds.
Is there anything I can do?
If you paid by debit card and the purchase was within the past 120 days you can make a Chargeback claim. If you paid by credit card, you either make a Chargeback claim or, if outside of 120 days, a Section 75 claim.