Thousands to miss out on refunds after fashion brand collapses
A fashion brand is unlikely to repay any money to customers or deliver missing goods after collapsing, the administrator has said.Huh. Ltd, which is based in the UK, was placed into administration back in November, with administrators now confirming almost 5,000 shoppers will neither get their money back or their orders.Three weeks before the company collapsed, Jack Lowe, the owner said anyone who is owed money would receive it, however, Maxwell Davies, an administrator has said this is unlikely.Papers lodged with Companies House demonstrate the business fell into administration with debts of about £575,000, including £162,319 owed to 4,983 customers.READ MORE: I found a hot chocolate as good as Cadbury for half the priceThe company only has about £56,060 in assets, including cash and stock, with it now seemingly unlikely any customers - as unsecured creditors - will get any money back from the firm.It has been estimated that administrators' costs could be £58,781 alone, the Mirror reported.HMRC is owed £73,310, and Danish furniture giant Hay APS is due £111,000.Administrator Ruth Ellen Duncan says she is examining how the firm was run in the period leading up to its collapse to establish whether any assets can still be recovered for creditors.“I am pursuing a detailed investigation into the affairs and trading activities of the company to identify any potential assets that can be realised for the benefit of the creditors,” she said.“This will require me to undertake a list of activities, including but not limited to, meeting and discussion with the director, reviewing and investigating the books and records, bank statements of the company, instructing and seeking legal advice where required.“Should any creditor have any concerns about the way the company's business has been conducted or information on any potential recoveries for the estate, they are invited to bring them to my attention.”The firm came under scrutiny after it received almost 3,000 one-star reviews on Trustpilot, with customers venting their anger over undelivered items, unprocessed returns and failed attempts to contact the owner.Mr Lowe, 38, claimed that supply issues had caused a backlog of orders to “snowball”, leading to longer-than-usual delivery times and refunds.He said his business relationship with a supplier had broken down and that its catalogue had been removed from the Huh. Store website.Pressed on why he had not turned off online orders or added a warning notice to the website while processing refunds, he said: “I have considered that."Friends suggested it as a solution, but I was conscious that it would put off future customers if they saw I have issues.“Everything is fine now, and orders are as they should be, so I don’t need to put a notice on the website.”On November 5, the firm was placed into administration. Maxwell Davies’ report states this decision followed the loss of a key supplier in September, which triggered a sudden collapse in revenue.READ MORE: Sainsbury's handing shoppers up to £1,500 in vouchers if part of specific schemeMr Lowe founded Huh. Ltd in 2011 using a £20,000 loan from his parents, with the firm starting out as a single shop in Hackney selling curated fashion, homeware and coffee.He and his partner later expanded into a Stoke Newington unit to support online sales with two part-time staff, while brand collaborations helped launch a London flagship store.In early 2019, the business relocated to Canterbury. Administrators say Covid lockdowns forced the closure of physical retail but drove a surge in online homeware sales, making 2020 the company’s most profitable year.Operations later moved to Barton Business Park as restrictions eased. The company returned to a loss in 2021 and then relied on directors’ loans, a VAT time-to-pay arrangement and £100,000 of shareholder funding to continue trading.Unable to meet rent and refund obligations after losing its key supplier, Mr Lowe sought professional advice and placed the company into administration.Administrators have advised customers to approach their bank for chargebacks - a special type of refund available when goods fail to arrive and a resolution with the merchant cannot be found.Mr Lowe was approached for comment by the Mirror.
