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Daily Mirror
Daily Mirror
Business
Levi Winchester

Made.com collapses into administration - your rights and what happens to orders

Made.com has entered administration with thousands of customers now facing uncertainty over refunds and orders.

The struggling furniture chain stopped taking new orders two weeks ago and filed a notice to appoint administrators shortly after.

Next has purchased its brand, website and intellectual property for a reported £3.4million - but it won't be buying the remaining stock.

Made.com employed 573 permanent members of staff at the time of its collapse.

Administrators at PricewaterhouseCoopers (PwC) today confirmed 320 employees are being made redundant, while a further 79 workers who had resigned and were working their notice periods have also been let go.

A further 74 staff members will stay on to assist with the wind down. There are also 100 overseas staff but it isn't clear at this stage what the outcome of the administration process will be for these workers.

Made.com had originally hoped to find a buyer for the whole business - but an offer by its co-founder and former boss was rejected.

Ning Li said he had offered to buy Made.com with his own cash, saving about 100 jobs.

Made.com, which was founded in 2010, sold trendy furniture and home furnishings online and also had two showrooms - one in London and the other in Yorkshire.

It was valued at £775million last year after floating on the London Stock Exchange.

Made.com chair Susanne Given said: "Having run an extensive process to secure the future of the business, we are deeply disappointed that we have reached this point and how it will affect all our stakeholders, including employees, customers, suppliers and shareholders.

"We appreciate and deeply regret the frustration that MDL [Made.com Design Ltd] going into administration will have caused for everyone."

"I want to sincerely thank all our employees, customers, suppliers and partners for your support throughout the past 12 years, and especially during this difficult time where we have tried so hard to find a workable solution for the company and all its stakeholders."

What does this mean for customers

Made.com has estimated that roughly 4,500 orders are currently in transit and will be dispatched as normal.

But there will be around 12,000 orders which won’t be delivered to customers in the UK.

If items don’t arrive, then you can submit a claim through the administrators.

This basically means you'll be joining a list of people the company owes money to - so it isn't guaranteed you'll get any money back at all and customers often don't take priority.

Made.com is also still not processing returns or order cancellations.

If you're waiting for a refund or have an item you want to return, it might be possible for you to make a claim through your debit or credit card provider.

If you bought something on your credit card costing more than £100, you can try to make a claim under Section 75 of the Consumer Credit Act.

If you paid for goods that cost less than £100 on a credit or debit card, you may be able to use Chargeback to get your money back - although this isn't enshrined in law.

For products that are faulty, you might be able to claim through a manufacturer or third-party warranty.

Lisa Webb, Which? consumer rights expert, said: “The news that Made.com is entering administration will be devastating for employees, as well as a real concern for customers with orders placed, particularly as exercising your rights is not always straightforward in these circumstances.

“When a company enters administration, it may not accept the return of items. Many customers could find themselves in a situation where items have not been delivered.

“It is always worth trying to claim for a refund in this situation, but customers should know it is not guaranteed.“

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