House of Fraser Problems

[said]

Has anyone else been affected by the take over of The House of Fraser?

The company is in the process of a take over by Sports Direct. Anyone who holds gift cards for the House of Fraser have been asked to return the cards to H of F head office, but there is no guarantee that anyone will receive any payments.

There is a long list of people who have ordered items, before the liquidation was announced, and have had to return them for one reason or another, and are still waiting for a refund after several weeks.

I am one of the latter group. I was promised a refund after fourteen days, that period passed three weeks ago and I still have not got a refund.

According to the information that I have received, any company in liquidation will first look at their secured creditors to repay them. Customers who have purchased items, etc., are unsecured creditors and come bottom of the list for repayments, depending on the agreement made with the incoming company (Sports Direct) who have already stated that H of F creditors are not their concern.

Surely if a company is taking over another company, ALL creditors should be taken into consideration! I am not happy to be propping up Sports Direct thank you.

[Alikado]

They didn't 'take the company over', it was 'bought out of administration'.
This is the latest dodge to escape liabilities to unsecured creditors and Pension schemes, it needs stopping asap.
I think that regulations need bringing in to prohibit / limit dividends if the company has a hole in the Pension Fund.
Much of the debts run up by these failing companies is because they are paying out dividends that are unaffordable.

[salus.populi]

If you paid by card and it was over £100 contact your card issuer for the refund.

[Lamparilla]

Step aside Sir Philip Green, welcome Mike Ashley.

[said]

If you paid by card and it was over £100 contact your card issuer for the refund.

Thanks, I am already trying my card company for a clawback, I don't know how that will pan out. I NEVER spend more than fifty quid on the internet because you just cannot trust anyone these days.

[said]

They didn't 'take the company over', it was 'bought out of administration'.
This is the latest dodge to escape liabilities to unsecured creditors and Pension schemes, it needs stopping asap.
I think that regulations need bringing in to prohibit / limit dividends if the company has a hole in the Pension Fund.
Much of the debts run up by these failing companies is because they are paying out dividends that are unaffordable.

Thanks for that information - I think the financial ombudsman will be brought in on this one, there are a large number of people affected. Perhaps that will make the scam more public.

[Albion102]

The truth of the matter is that had Sports Direct not bought it out of administration, it would have gone into liquidation, with the result that all the employees would lose their jobs. The vast majority of pensions will be supported by the pension protection fund, which protects pensions earned on salaries of up to £40k. The PPF is actually a massive insurance scheme, payed into by companies based upon the size of their pension deficit and is sitting on reserves of around £6bn. The existing value of HoF's pension fund will be protected.

I don't know if any of you have visited any House of Fraser stores in recent years - basically like shopping in Debenhams, but paying Harrods prices.

[Polly Trott]

The truth of the matter is that had Sports Direct not bought it out of administration, it would have gone into liquidation, with the result that all the employees would lose their jobs. The vast majority of pensions will be supported by the pension protection fund, which protects pensions earned on salaries of up to £40k. The PPF is actually a massive insurance scheme, payed into by companies based upon the size of their pension deficit and is sitting on reserves of around £6bn. The existing value of HoF's pension fund will be protected.

I don't know if any of you have visited any House of Fraser stores in recent years - basically like shopping in Debenhams, but paying Harrods prices.

Pensions protected with PPF? Minus at least ten percent is my understanding.

[Chas King]

They didn't 'take the company over', it was 'bought out of administration'.
This is the latest dodge to escape liabilities to unsecured creditors and Pension schemes, it needs stopping asap.
I think that regulations need bringing in to prohibit / limit dividends if the company has a hole in the Pension Fund.
Much of the debts run up by these failing companies is because they are paying out dividends that are unaffordable.

It is not a "dodge" the administrators/receivers have sold the stock and the order book to a new company. It will never be stopped ! What I don't like is when they perform a "Pre Pack " where the origonal owners buy the company back without the liabilities !

[said]

It is not a "dodge" the administrators/receivers have sold the stock and the order book to a new company. It will never be stopped ! What I don't like is when they perform a "Pre Pack " where the origonal owners buy the company back without the liabilities !

Yes, but some of the money that they are using to pay creditors, wages etc., is customer's money. It is not their money to use.

One woman whose action was published recently in the media, had paid for a settee and was waiting for her order which never arrived. She spotted the same settee in her local House of Fraser store, hired a van and took it out of the shop. The police were called and she showed them the receipt for the item. The police could not do anything because it was a civil matter between the store and the customer.

[Alikado]

Debenhams are in trouble now their shares plumeted 17% today.

[Chas King]

Yes, but some of the money that they are using to pay creditors, wages etc., is customer's money. It is not their money to use.

One woman whose action was published recently in the media, had paid for a settee and was waiting for her order which never arrived. She spotted the same settee in her local House of Fraser store, hired a van and took it out of the shop. The police were called and she showed them the receipt for the item. The police could not do anything because it was a civil matter between the store and the customer.

They do not receive any money, only the administrators receive money and the only creditors that get paid are the ones that are secured i.e that have county court or High Court Judgements. The Banks usually have a charge or a debenture and the crown gets paid if there are any funds left (The crown being the INland Revenue and VAT) .