Debenhams, Topshop and Arcadia refund and gift voucher rights explained
TOPSHOP, Dorothy Perkins and Burton are among the shops affected after Arcadia's fall into administration and Debenhams is set to close.
But what does that mean for returns and gift cards, and can you still shop there - here we explain your rights and what happens next for shoppers.
Arcadia, which has fallen in administration from the toll of the coronavirus pandemic, has eight brands with many familiar faces on British high streets and they include:
- Topshop
- Topman
- Burton
- Dorothy Perkins
- Evans
- Miss Selfridge
- Outfit
- Wallis
Debenhams went into administration in April and has failed it find a buyer which means the end of the high street department store.
Can I still shop at Debenhams, Topshop and other Arcadia stores??
Debenhams will continue trading until its current stock has sold out.
That means all 124 stores will be open from tomorrow (December 2) when lockdown lifts in England and the website is still up and running.
Dates for store closures will depend on when stock sells out and if parts of the business are sold off.
Topshop and Arcadia's other stores will continue trading during the administration.
People can continue to shop online, the administrators have said, and stores will reopen when covid restrictions lift.
All orders made online over the Black Friday weekend will be honoured.
Arcadia has around 444 stores in the UK and 22 elsewhere and employs around 13,000 staff who will continue to be employed.
What does it mean when a company goes into administration?
ADMINISTRATION is when all control of a company is passed to an appointed to a licensed insolvency practitioner.
Administration is when all control of a company is passed to an appointed to a licensed insolvency practitioner.
It doesn’t necessarily mean the end of the business.
Instead, administrators will try to help a company find ways to repay debts or solve its cashflow problems.
Administration can last anywhere from a few weeks to up to a year or more.
But if the administration process can't rescue the company or find a new owner, this can lead to liquidation.
Liquidation is the process of selling all assets and then dissolving the company completely.
Ian Grabiner, the chief executive of Arcadia, said: "Throughout this process, trading will continue across all of our brands.
";Our stores will remain open or reopen when permitted under the Government covid-19 restrictions, our online platforms will be fully operational and supplies to all of our partners will continue.”
Can I return something to Debenhams, Topshop and other Arcadia shops?
Debenhams will continue to process returns as normal.
Arcadia administrators say that people can still return items as normal to Topshop other Arcadia stores.
Like a lot of other retailers, Topshop extended its returns window because of covid.
It says on its websites that shoppers who have bought anything after November 2 have until January 31 2021 to take items back.
It's best to do this sooner rather than later in case the company fails to find a buyer and stops trading.
It's also worth remembering that it's an especially busy time of year for all retailers, and even more so with coronavirus, and returns by post may take longer than usual.
Can I still use Debenhams, Topshop and Arcadia gift vouchers?
Debenhams will continue to accept gift vouchers.
Top shop and other Arcadia stores will still accept gift vouchers, but only to cover 50% of the purchase.
That means shoppers will have to cover the rest of the purchase equivalent to the value of the voucher.
Experts say it's best to use any vouchers you have as soon as possible as they can decide to stop accepting them at any time.
And it's best to avoid buying any gift vouchers as a Christmas gift in case this happens later on.
Topshop and other Arcadia stores will not be selling new gift cards and vouchers.
Martyn James, consumer expert at Resolver, told The Sun: “Anyone with outstanding cards should get online now and use them up.
“Though the Arcadia Group may continue to operate, it makes sense to shop now - and bear in mind your return rights also end if the firm goes under.
“Once again, today's news is a sad reminder that even huge businesses can go bust and gift cards might not be the most practical gift you can give to your loved ones at Christmas.”
What happens next?
When a company goes into administration it doesn't always mean the business will disappear.
The administrators in charge of the process for Arcadia are looking for buyers for the business.
For example when Liam Gallagher's clothing brand went into administration it was snapped up by JD Sports.
But if the administration process can't rescue the company or find a new owner, this can lead to liquidation.
Liquidation is the process of selling all assets and then dissolving the company completely.
Debenhams failed to find a buyer after going into administration back in April.
The department store has now gone into liquidation, meaning all its 124 stores will eventually close.
Most read in Money
Topshop boss Sir Philip Green has been pictured in Monaco as retail empire collapsed, costing 13,000 jobs.
READ MORE SUN STORIES
Online travel agent LastMinute is paying back £7million to customers with cancelled holidays following the coronavirus crisis.