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The Markets
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The Markets
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Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Retail

Returns at Missguided will not be refunded, says administrator

The decision comes as the Manchester-based company filed for insolvency last month

Manchester-based fashion retailer Missguided's administrator has told shoppers they will not receive refunds for returns.

The decision comes after the fashion brand fell into insolvency last month after amassing millions of pounds of unpaid debts.

Though Mike Ashley's Frasers Group completed a deal to buy Missguided, along with its sister brand Mennace, for around £20mln two weeks ago, Teneo Financial Advisory, the administrator currently managing Missguided, informed customers refunds requested before their May 30 appointment will not be honoured.

If a company goes bankrupt, customers are typically among the last creditors to receive repayments.

Teneo is still running the company before it is handed over to Frasers and facing pressure from customers over delays in deliveries following the collapse.

Last autumn, finance firm Alteri Investors rescued Missguided, which has been plagued by supply chain problems, rising freight costs, and increased competition from rivals such as Boohoo Group PLC (AIM:BOO) and Chinese firm Shein.

Frasers, which owns Sports Direct and House of Fraser, agreed to buy Missguided earlier this month, but the sale is expected to close by August.

It also confirmed it will rehire Missguided founder Nitin Passi as its chief executive once the acquisition has been completed.

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

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