MARTIN Lewis has warned Christmas shoppers to use their TopShop gift vouchers as soon as possible in case the company goes bust.
Arcadia Group, which owns brands including Topshop, Topman, Dorothy Perkins and Miss Selfridge, fell into administration on Monday.
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Around 13,000 jobs are at risk while the fashion giant looks at ways to save the business.
Speaking on ITV’s This Morning, the MoneySavingExpert reminded viewers that technically a company doesn’t have to honour gift vouchers if it is struggling financially.
Topshop is currently allowing shoppers to spend their vouchers in store and online but it can only be used to pay for up to 50% of a purchase.
For example, if you have a £10 giftcard you’ll need to buy something for £20 before you can claim it.
Your rights when a company goes into administration
THE people appointed to manage an administration can decide whether to allow the use of gift cards and vouchers or not.
Sometimes the administrators decide it is in the best interests of the company to still allow people to spend gift cards, but they don’t have to do this.
If they say you can’t use your voucher, you should register a claim with the liquidators for the value of the gift card.
Unfortunately, you may only get a small proportion of the sum you’re claiming or nothing at all.
If the voucher was worth more than £100, and it was purchased with a credit card, then you may be able to claim the money back through your card provider under Section 75 of the Consumer Rights Act.
For spends under £100, or if the voucher was purchased with a debit card, you might be able to make a claim through the “chargeback” scheme.
But unlike Section 75, this isn’t a legal requirement so there’s no guarantee you’ll get your money back.
If the administrators decide you can spend your voucher, you may want to do this sooner rather than later in case they suddenly stop accepting them.
Other Arcadia Group retailers, such as Dorothy Perkins and Miss Selfridge, have also adopted the same policy.
Shoppers are unlikely to ever see the cash back from unspent gift cards if the retailers does go bust.
You’ll be added to a long list of creditors who are owed cash, with big lenders being pushed to the front of the queue.
“I’d spend it [your gift voucher] in store,” explained Martin, “because if you order online and something were to change, then you would become accredited to the company.
“At least if you buy in store you’ve got the tangible goods in your hand.”
Topshop has stopped selling gift cards while its future remains uncertain.
Even so, the consumer guru continued to warn anyone thinking of buying a retail gift voucher a present for Christmas not to.
He added: “For the past 10 years I’ve been pulling my hair out trying to tell people that gift vouchers are not safe.
“Be very careful and do not buy gift vouchers, especially during a struggling time.”
The high street has suffered huge blows due to the impact of the coronavirus pandemic, which many struggling to stay afloat amid lockdowns.
So far, Cath Kidson, Warehouse and Oasis are among the retailers calling it a day, while others have axed thousands of jobs in order to stay afloat.
Debenhams shoppers have also been told to spend any vouchers as soon as possible.
Its 124 stores will close completely and the department store will disappear form the high street after failing to be rescued from administration.
Shoppers looking to spend more than £100 at Topshop or Debenhams should pay with their credit card for added consumer protection.
Consumer rights expert at Which?, Adam French, previously told The Sun: “You’ll be able to make a claim against your credit card company to recover the money if anything goes wrong.”
