Online furniture retailer Made.com could be on the brink of collapse after failing to find a new buyer. The company has stopped taking new orders after its share price plummeted.
Talks with potential buyers were terminated earlier this week, which may leave customers who have ordered from the firm concerned. The company told the PA News Agency that it "will take the appropriate steps to preserve value for creditors."
This may still leave some wondering about their rights in the event of buying goods from a retailer which goes into administration shortly thereafter. Thankfully, the consumer experts at Which? have outlined customers' rights should this ever occur.
Lisa Webb, Which? Consumer Rights Expert, said: "The prospect of Made.com entering administration will be concerning news for customers with orders placed – and exercising rights is not always straightforward in these circumstances. If a company enters administration, it may not accept the return of items.
"Many customers may 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. The cost of repairs for faulty items could still be claimed if they came with a warranty."
While there is no guarantee that you will get a refund on items after a company goes into administration, as it can depend on the retailer's policies among other things, there are ways to ensure that you are compensated. The consumer experts point out that larger purchases with a credit card are protected by law in the UK.
Lisa Webb explains: "If you’ve bought something on your credit card costing more than £100, the card provider is jointly responsible for any breaches of contract. You can claim under Section 75 of the Consumer Credit Act if the item is faulty or not delivered.
"If you paid for goods that cost less than £100 on a credit or debit card, you may be able to claim under chargeback."
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