Retail: what happens when a firm goes into administration?

 

With Arcadia announcing that it is going into administration, several retail stores such as TopShop, Miss Selfridge, TopMan, Wallis, Evans and Dorothy Perkins may have to close their doors. Nonetheless, this news does not mean that the outlets will definitely disappear. Experts are working on finding a solution. What will happen in case there are closures? Learn about your rights as a shopper.


Most, if not all high street stores, have generous returns policies. This means that you can get a refund or exchange items that you do not want. However, if a shop is closed, this process might be difficult, or even impossible. During an administration process, returns policies vary according to administrators. That is why you must visit retail firms while they are still open to find a solution.

Moreover, if you order something before a company closes down but you do not receive it, you can claim your money back. For instance, according to Section 75 of the Consumer Credit Act, both the retailer and the financial firm are ‘jointly liable’ to repay you. This means that if the retail company is unable to give you a refund, you can ask your card company to do so. If the payment was completed via your debit card, your bank can process a charge back.


You can get a refund for unwanted items © Royalty-free image

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