Thousands of customers have been left out of pocket after online fashion retailer SilkFred collapsed into administration, with officials confirming that refunds will not be issued for unfulfilled orders.
Financial advisory firm Quantuma, appointed as administrator, said there are insufficient funds to pay unsecured creditors — including shoppers awaiting items that will never arrive.
In a notice to affected customers, the administrators said: “The money owed to you will be a claim in the administration but unfortunately there is unlikely to be any money to be paid out.”
SilkFred, known for its women’s fashion collections sold exclusively online, entered administration on October 29, just five days after filing notice of its intention to appoint administrators.
The collapse has halted all pending deliveries, with administrators confirming no further orders will be dispatched.
Customers whose purchases remain undelivered are now considered unsecured creditors, ranking low in the legal order for any potential payments from remaining assets.
Quantuma has taken control of the company’s assets and is managing the wind-down process.
The rapid move from warning notice to full administration within a week highlights the severity of SilkFred’s financial position.
Administrators say no funds remain to repay shoppers
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Administrators said they are attempting to secure refunds through SilkFred’s payment processing provider for orders not yet shipped.
However, they warned that many shoppers may not receive their money back.
“Unfortunately, if they are unable to process a refund for you then it will not be possible to obtain a refund from SilkFred,” Quantuma said.
The administration process prevents the retailer from issuing direct refunds.
Administrators are advising eligible customers to contact their card companies immediately
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PEXELSThose who paid by credit card for purchases worth more than £100 may be able to claim under Section 75 of the Consumer Credit Act, which allows cardholders to seek reimbursement from their credit provider when a retailer fails to deliver goods or services.
Administrators are advising eligible customers to contact their card companies immediately.
Section 75 makes credit providers jointly liable with the retailer, offering the strongest protection for consumers affected by the collapse.
The rule applies even if only part of the payment was made by credit card, and it covers the full amount owed.
Gift vouchers and store credit have been rendered worthless,
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PexelsCustomers who paid by debit card may be able to request a refund through the Chargeback scheme, though this is a voluntary agreement between banks and not a legal right.
Those seeking refunds through Chargeback should contact their banks as soon as possible, but success cannot be guaranteed.
Meanwhile, gift vouchers and store credit have been rendered worthless, and returns will no longer be processed.
Shoppers who attempted to return items before the administration, or who wish to return recent purchases, will not receive replacements or refunds.
SilkFred’s collapse marks another blow to Britain’s struggling fashion retail sector, with online brands continuing to face intense competition, rising costs and fragile consumer confidence.