Is Cath Kidston going into administration and is there a sale online?
FASHION brand Cath Kidston announced it planned to file for administration at the end of last week, putting almost 950 jobs at risk.
The retailer confirmed that it intends to appoint advisory firm Alvarez & Marsal as administrators as part of an ongoing process to try and save the company.
Cath Kidston had been in the middle of a turnaround plan before the global coronavirus pandemic struck, which forced it to close its stores.
The chain sells home furnishings, clothes and accessories its distinctive floral and vintage prints.
It has 60 shops in the UK which are currently closed, but the shop is still trading online.
What does the administration mean for the brand?
Administration aims to help a company repay debts in order to avoid insolvency, if possible.
If it’s successful, the business can recover - so this might not be the end of Cath Kidston.
But if the administration process can't rescue the company or find a new owner, this usually leads to liquidation.
Liquidation is the process of selling all assets before dissolving the company completely.
I have a Cath Kidston gift cards - can I use it?
When a company goes into administration the people appointed to manage the process can decide whether to allow the use of gift cards or not.
Sometimes they decide it is in the best interests of the company to still allow people to spend vouchers - but you will need to keep an eye on the process.
At the moment, it seems like you can still spend Cath Kidston vouchers - but this may change so if you want to buy something, do it sooner rather than later.
If the administrators later decide that you can't use your vouchers, you should register a claim with the liquidators for the value of the vouchers.
However, you may not get this money back if other creditors are owed money too.
If the voucher or amount put on a gift card was for more than £100, then it may be possible for the person that bought it to claim the money back from their card provider.
How do I protect myself if I’m buying something now?
If you want to buy something from the Cath Kidston website today, the best thing to do is use a credit card.
That way, if the company goes into liquidation before you receive your goods you will be able to claim back the value of the goods via your credit card company.
Be warned that if you buy something and then decide to send it back because you don’t like it, the company may have collapsed and you might not get your money back.
Is there currently a sale on?
The Cath Kidston website is still functioning normally and at the moment the brand has a sale on a number of items.
But remember - you take the same risk buying something in the sale as you do for any goods, so paying on a credit card is the best way to protect yourself.
And remember, you may not be able to get a refund if you decide you no longer want something if the company goes bust.
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