URGENT UPDATE: Fashion retailer SilkFred has officially entered administration, leaving customers unable to process refunds or complete their orders. The announcement came just days after the company appointed administrators on October 24 and ceased operations by October 29, pulling its website offline.
Customers are now facing an uphill battle as SilkFred has confirmed that no further deliveries will be made, and refunds are currently impossible for all shoppers. In a statement, the retailer emphasized that any purchases made will not be refunded, highlighting the financial turmoil impacting countless consumers.
Administrator firm Quantuma has indicated that customers who are owed money will be deemed ‘unsecured creditors,’ meaning they stand little chance of recovering lost funds. Joint administrators Andrew Watling and Duncan Beat explained,
“As a result of the administration, it is not possible to make any further refunds. Creditor claims will be dealt with as set out in a legal order of priority, but unfortunately, based on current information, there will not be sufficient funds to make any payments to unsecured creditors.”
The shockwaves of SilkFred’s collapse are felt acutely by its loyal customer base, who are now urged to refrain from returning unwanted items and to avoid using any vouchers or gift cards previously purchased.
SilkFred’s struggle has been attributed to the ongoing cost-of-living crisis, which has significantly pressured consumers alongside fierce competition from overseas fast fashion brands. The retailer, which has provided a platform for over 500 independent brands, shared its heartbreak on Instagram, stating,
“We’re deeply grateful to everyone who’s been part of our journey – our customers, our brands, and our team. Thank you to everyone who’s been part of our journey. You made SilkFred what it was.”
While SilkFred will not process refunds, some customers may still find recourse through their credit card providers. Shoppers who made purchases totaling between £100 and £30,000 may be eligible to claim refunds under Section 75 of the Consumer Credit Act, provided they used a credit card for part of their payment.
Founded in 2011 by entrepreneur Emma Watkinson, SilkFred quickly grew from a London-based retailer to an international brand, reaching markets in the U.S., UAE, Ireland, and Australia. Watkinson expressed her gratitude to all who supported the platform, stating,
“Seeing a lot of your businesses go from market stalls and kitchen table side hustles to multi-million pound businesses has made so much of this journey worthwhile.”
As the situation unfolds, customers are urged to stay informed about their rights and potential claims. The retail landscape continues to be shaped by economic challenges, and the ramifications of SilkFred’s closure serve as a stark reminder of the volatile nature of the industry.
Stay tuned for further updates as we monitor this developing story.
