STUDIO Retail Group has been saved from administration after being bought by Frasers Group – here’s what it means for customers.
The online retailer appointed administrators yesterday after warning last week that it was on the brink of collapse.
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It stopped taking orders last Monday after failing to secure an emergency £25million loan to keep trading.
But Fraser Group, owned by retail tycoon Mike Ashley, has saved the company from toppling after buying it for £26.8million.
It means that 1,500 jobs have been saved under the deal, and the company will be able to start trading again.
But customers will want to know what will happen to orders or refunds they’re owed in the meantime.
Studio allowed shoppers to open credit accounts, so there are also questions over what to do if you still owe money.
We explain everything you need to know about your consumer rights while Studio is yet to start trading again.
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What are my rights if I’m waiting for an order?
Studio previously confirmed that all outstanding orders are being stored at its warehouse.
Customers have complained that their orders are marked as “awaiting dispatch” but haven’t been sent after several weeks.
The company said Studio Pay customers will be credited if they can’t send their orders.
However, it has not said whether it will repay customers who paid in full at checkout.
If you don’t get your items, you might be able to get a refund – depending on how you paid.
Shoppers who paid with a credit card could get their money back under Section 75 of the Consumer Credit Act.
If what you bought cost more than £100 then your credit card company should cover the refund.
Write to your card provider asking for the full amount you paid. If your claim is unsuccessful you can ask the Financial Ombudsman Service to look at your case.
You could also secure a refund if you paid using a Visa or Mastercard debit card.
This is called a “chargeback” and you have to submit a claim within 120 days of your purchase.
It’s not a legal requirement, but it’s worth a go if you have been left out of pocket.
Customers who paid through a third-party should contact that payment provider first.
For example, Paypal will let you open a dispute within 180 days of making a purchase.
“My advice for anyone waiting for orders that haven’t been dispatched is to contact your card provider,” Martyn James at complaints website Resolver said.
“Cut your losses and chargeback the money if you can.
“The big takeaway piece of advice here is that speed is of the essence,” he told The Sun.
“Don’t linger, get on to your bank or card provider.
“The key thing is to say the firm has gone into administration. Sometimes they ask you to sign a document, so say you’re happy to do that but ask if they can start the charge back right now.”
What are my rights if I’m waiting for a refund?
Many customers are already waiting for a refund after returning goods.
The company says it is still processing returns but customers report they’re waiting for their money back months after returning items.
We spoke to one mum who has been waiting for an £80 refund for more than a month after she sent back a faulty electric scooter.
Studio said its customer service teams are still available via email and phone on 0371 200 0378.
However, the line is likely to be very busy so you could be waiting a while for a response.
We have asked Teneo what customers who are waiting for a refund should do.
We will update this article when we have more information.
What are my rights if I have a Studio Retail credit account?
If you owe money on a Studio Retail credit account, the company’s latest advice is that you should still make payments.
Otherwise you might be hit with a £12 late payment charge.
However, some customers have reported struggling to get onto their accounts to make the payments.
We have asked Teneo for more clarity on what customers in debt should do next.
If you’re worried you should contact Citizens Advice for free support.
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