18th Sep 2018
Customers of House of Fraser have been left frustrated and out of pocket after its new owner Sports Direct – which completed a buyout that rescued the company from administration last month – reneged on an offer to refund customers for undelivered goods.
The store group initially said on 16 August via its social media channels that it would cancel and refund online orders that were yet to be sent out.
However, customers are now being advised that they will have to apply to the administrator, EY, to receive their refunds, joining a long list of other unsecured creditors.
A spokesman for House of Fraser told The Guardian: “We cannot comment on individual cases, however, the correct course of action for customers who have issues regarding goods purchased prior to August 10 is to contact the administrators at EY.”
A spokeswoman for EY warned that customers awaiting goods stood little chance of recouping their money back from the administration process, and that those who did receive repayment would receive only a few pence for each pound spent.
They also advised that any payments would take at least 12 months, and that affected customers should be claiming from their card or payment providers first.
Customers haven taken to social media to vent their frustrations and complain that they have not received refunds or have not been contacted with regards to refunds.
Sports Direct – which is owned by controversial retail entrepreneur Mike Ashley, who has faced criticism in the past for the way in which his company is run – is under no legal obligation to refund customers for orders made before House of Fraser went into administration.
Ashley has spoken of his desire to turn House of Fraser “into the Harrods of the high street”.