Empire Direct collapse hits customers
Hundreds of consumers are likely to be left out of pocket because of the collapse of electrical goods retailer Empire Direct.
Business restructuring firm KPMG said 5,800 customers had not received their orders. Of these, 4,800 paid by card and, using banking industry data, the administrators estimate that just over 4,000 of these will be able to claim a refund from their card issuer.
The remaining customers will become unsecured creditors of the company and can lodge a claim with the administrators, although a payment is not expected.
The Leeds-based company traded mainly online but also had 14 UK shops, which have closed, while 158 of its 350 employees have been made redundant.
Empire Direct’s small print stated that the customer does not take ownership of goods ordered until delivery or collection.
Nor will any refunds be paid, because of the retailer’s lack of funds when it entered administration - the money paid by customers went into its overdrawn bank account.
Mark Firmin, KPMG restructuring partner, said: ``The customer phone line we established on Tuesday has received 1,000 calls a day from concerned customers and so I am very aware of how regrettable this situation is for many customers of Empire Direct.
"Those who have paid by card should contact their card provider to establish whether they are entitled to a refund. We will be working with the card providers to facilitate refunds.”
