Will we realistically get our money back?
Discussion
Me and our lass were shopping on Saturday. Actually, our lass was shopping on Saturday. I was there to carry bags. Anyway, we went into a certain shoe shop, who have recently gone into administration. My girlfriend was given £70.00 of gift vouchers for her birthday which she needed to spend before the store closed down. She chose two pairs of shoes, totalling £85.00. On paying, we were told that they aren't accepting gift vouchers any more. Obviously quite narked, my girlfriend asked if she could have her £70.00 back then. She was told no. So she asked if there was a way of getting it back, as they had £70.00 of her money. We were given an address to write to in order to try and claim it back.
Do you think that we will realistically get it? Surely we're technically in £70.00 of credit with them, which we should be able to have if requested? Despite working in Finance, I'm not really sure what happens with regard to that when a company goes into administration. Has anybody had to go down this route before?
Do you think that we will realistically get it? Surely we're technically in £70.00 of credit with them, which we should be able to have if requested? Despite working in Finance, I'm not really sure what happens with regard to that when a company goes into administration. Has anybody had to go down this route before?
Matt Evans said:
Me and our lass were shopping on Saturday. Actually, our lass was shopping on Saturday. I was there to carry bags. Anyway, we went into a certain shoe shop, who have recently gone into administration. My girlfriend was given £70.00 of gift vouchers for her birthday which she needed to spend before the store closed down. She chose two pairs of shoes, totalling £85.00. On paying, we were told that they aren't accepting gift vouchers any more. Obviously quite narked, my girlfriend asked if she could have her £70.00 back then. She was told no. So she asked if there was a way of getting it back, as they had £70.00 of her money. We were given an address to write to in order to try and claim it back.
Do you think that we will realistically get it? Surely we're technically in £70.00 of credit with them, which we should be able to have if requested? Despite working in Finance, I'm not really sure what happens with regard to that when a company goes into administration. Has anybody had to go down this route before?
Leave £15 on the counter and take the shoes. Let them chase you through the courts if they can be arsed Do you think that we will realistically get it? Surely we're technically in £70.00 of credit with them, which we should be able to have if requested? Despite working in Finance, I'm not really sure what happens with regard to that when a company goes into administration. Has anybody had to go down this route before?
I got stiffed with Zavvi vouchers a while back. I rushed to the store to spend them only to be told they won't accept them even though the store was open. I wasn't the only person raising my voice and shouting at people.
They were obviously expecting irate customers because they had laid on extra security...
They were obviously expecting irate customers because they had laid on extra security...
BigotOut said:
Matt Evans said:
Me and our lass were shopping on Saturday. Actually, our lass was shopping on Saturday. I was there to carry bags. Anyway, we went into a certain shoe shop, who have recently gone into administration. My girlfriend was given £70.00 of gift vouchers for her birthday which she needed to spend before the store closed down. She chose two pairs of shoes, totalling £85.00. On paying, we were told that they aren't accepting gift vouchers any more. Obviously quite narked, my girlfriend asked if she could have her £70.00 back then. She was told no. So she asked if there was a way of getting it back, as they had £70.00 of her money. We were given an address to write to in order to try and claim it back.
Do you think that we will realistically get it? Surely we're technically in £70.00 of credit with them, which we should be able to have if requested? Despite working in Finance, I'm not really sure what happens with regard to that when a company goes into administration. Has anybody had to go down this route before?
Leave £15 on the counter and take the shoes. Let them chase you through the courts if they can be arsed Do you think that we will realistically get it? Surely we're technically in £70.00 of credit with them, which we should be able to have if requested? Despite working in Finance, I'm not really sure what happens with regard to that when a company goes into administration. Has anybody had to go down this route before?
I work for Insolvency Practitioners and can confirm that if you send the vouchers to the address they gave you I would pretty much assume that will be the Insolvency Practitioners dealing with the Administration.
They will register your girlfriend as an unsecured creditor for the value of her vouchers. If and when there should ever be a distribution to unsecured creditors then you will receive anything from 1-100p in the £ against the face value of the vouchers.
Unfortunately, I can't comment on whether she is likely to get any money back because any funds raised in the Administration will first have to pay the secured creditors (Bank etc) and then preferential creditors (the employees wage arrears and holiday pay) and then unsecured creditors not allowing for the general costs of running the Administration.
To be honest the chance of you getting the full value of the vouchers back is probably very slim but you may get something back so its definitely worth registering with the Administrators.
They will register your girlfriend as an unsecured creditor for the value of her vouchers. If and when there should ever be a distribution to unsecured creditors then you will receive anything from 1-100p in the £ against the face value of the vouchers.
Unfortunately, I can't comment on whether she is likely to get any money back because any funds raised in the Administration will first have to pay the secured creditors (Bank etc) and then preferential creditors (the employees wage arrears and holiday pay) and then unsecured creditors not allowing for the general costs of running the Administration.
To be honest the chance of you getting the full value of the vouchers back is probably very slim but you may get something back so its definitely worth registering with the Administrators.
They do not have to accept the vouchers following the insolvency event. Yes someone somewhere paid for those vouchers, however, in the event of insolvency it voids the contract on the vouchers in the same as it would void warranties etc.
You are purely classed as a creditor the same as any other suppliers to the Company. If they paid out against your vouchers before paying other creditors it would be classed as a preference.
As for the question about stock - yes suppliers will be able to get their stock back if they have a valid retention of title clause. The Administrators would probably strike a deal with such creditors though and agree to pay them the cost price of any goods sold that can be identified under any such clause.
The main source of income for all the Company's creditors will not be the sale of a few shoes here and there, it will be the sale of the brand to a new owner.
You are purely classed as a creditor the same as any other suppliers to the Company. If they paid out against your vouchers before paying other creditors it would be classed as a preference.
As for the question about stock - yes suppliers will be able to get their stock back if they have a valid retention of title clause. The Administrators would probably strike a deal with such creditors though and agree to pay them the cost price of any goods sold that can be identified under any such clause.
The main source of income for all the Company's creditors will not be the sale of a few shoes here and there, it will be the sale of the brand to a new owner.
anonymous said:
[redacted]
I've known of many footwear retailers over the years that have gone bust but the "brand" is worth a lot of money still because it is still popular.Shopfittings and general assets are worth next to nothing on a resale value if they are not included in a sale as a going concern which would obviously include the brand, goodwill etc.
As for the Administrator's bill comment - I cannot comment on this particular situation because I don't know what firm are dealing with it. I don't really want to be pulled into a row about how insolvency practitioners are money grabbing scum just because someone has heard something from a mate or seen it on the news about how no creditors got any money back but they have absolutely no knowledge of what happened and what assets there were!
unfortunately you wont get anything. in short, creditors are prioritised and whlist there will be an awful lot of unsecured creditors, i am sure others owed money include the tax man, utilities etc and the administrators will put them first in the queue for whatever payout may occur. i think that limited companies will then get a chance and then you and the other shoppers. this 10p/£ stuff very rarely makes its way down to the customers if ever. if you write to the administrators, you will venetually get a letter that says something like "due to limited funds, blah blah blah, HRMC got some, you wont...."
To balance the negativity a little, my OH was given £40 of Zavvi vouchers and was in the same position. She did as instructed and wrote to the administrators. Last month she received a cheque for £40 
It may take a while but it's worth going through the procedures of seeking a refund.
It may take a while but it's worth going through the procedures of seeking a refund.
monthefish said:
BigotOut said:
Matt Evans said:
Me and our lass were shopping on Saturday. Actually, our lass was shopping on Saturday. I was there to carry bags. Anyway, we went into a certain shoe shop, who have recently gone into administration. My girlfriend was given £70.00 of gift vouchers for her birthday which she needed to spend before the store closed down. She chose two pairs of shoes, totalling £85.00. On paying, we were told that they aren't accepting gift vouchers any more. Obviously quite narked, my girlfriend asked if she could have her £70.00 back then. She was told no. So she asked if there was a way of getting it back, as they had £70.00 of her money. We were given an address to write to in order to try and claim it back.
Do you think that we will realistically get it? Surely we're technically in £70.00 of credit with them, which we should be able to have if requested? Despite working in Finance, I'm not really sure what happens with regard to that when a company goes into administration. Has anybody had to go down this route before?
Leave £15 on the counter and take the shoes. Let them chase you through the courts if they can be arsed Do you think that we will realistically get it? Surely we're technically in £70.00 of credit with them, which we should be able to have if requested? Despite working in Finance, I'm not really sure what happens with regard to that when a company goes into administration. Has anybody had to go down this route before?
What do you reckon the legal ramifications would be? Classed as theft i guess?
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