Online fashion retailer SilkFred has collapsed into administration and warned it does not have money to repay customers who are owed refunds.
SilkFred has stopped taking orders and will not be able to process returns. Shoppers have been warned to ‘not send any unwanted items’ back.
SilkFred filed a notice of intention to appoint an administrator on 24 October and then deactivated its online shop.
The London-based business entered administration on 29 October and is working with financial advisory firm Quantuma Advisory Limited to undertake the process.
Andrew Watling and Duncan Beat of Quantuma have been appointed as joint administrators of SilkFred.
On Quantuma’s website, it says the retailer entered administration ‘due to the financial issues that SilkFred was facing.’
No more SilkFred: Emma Watkinson was the chief executive and co-founder of SilkFred
On customer refunds, the joint administrators said: ‘As a result of the administration, it is not possible to make any further refunds.
‘Anybody owed money by SilkFred is called a “creditor’” and you will rank as an “unsecured creditor” in the administration.
‘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.’
For shoppers who paid for items on SilkFred by credit card and spent more than £100, you may be eligible to claim a repayment from your card provider.
Affected customers will need to ask for their money back under Section 75 of the Consumer Credit Act. Shoppers will need to contact their credit card provider directly to try and get a refund.
Don’t send it back: SilkFred shoppers have been warned to ‘not send any unwanted items’ back.
In a further blow to SilkFred shoppers, gift cards and vouchers for the company will not be honoured.
Speculation had been swirling on social media that all was not well at the retailer, with comments on its most recent Instagram post from last week stating that some customers had “not received any email confirmation’ of recent orders, as well as others asking for help to return items.
On 4 November, SilkFred said on Instagram: ‘We’re heartbroken to share that SilkFred has entered administration.’
It added: ‘In recent years the ongoing cost-of-living crisis has placed immense pressure on consumers, while rising costs and increasing competition from overseas fast fashion have made it increasingly difficult for independent brands to survive.’
The post continued: ‘We remain incredibly proud of what SilkFred achieved – helping women discover outfits that made them feel amazing, while supporting hundreds of independent designers to grow their businesses.
‘We’re deeply grateful to everyone who’se 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.’
SilkFred worked by connecting hundreds of independent fashion brands and designers with consumers.
The business was founded in 2011 by Emma Watkinson, alongside financial trader Stephen Jackson and his sister, former lawyer Kate Jackson.
In a personal post on Instagram, Watkinson said: ‘To everyone who backed us, shopped with us, sold with us, and worked with us, thank you.’
SilkFred specialised in womenswear, with a portfolio of partner brands including Apricot, Goddiva, Pretty Lavish, and Lily and Lionel.
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