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Administrator KPMG warns that unsecured creditors are unlikely to receive any compensation

No refunds for Empire Direct customers

There will be no refunds for customers of Empire Direct, the retailer’s administrator KPMG has confirmed.

Responding to questioning from Retail Bulletin, joint administrator KPMG’s Mark Firmin said that the administrator had been inundated by calls from customers enquiring about refunds. "The customer phone line we established on Tuesday has received a thousand calls a day from concerned customers and so I am very aware of how regrettable this decision is for many customers of Empire Direct.

"Those who paied by card should contact their card provider to establish whether they are entitled to a refund," he added. "We will be working with the card providers to facilitate refunds."

According to the administrators, a total of 5,800 customers had orders outstanding with the retailer when it called in KPMG. Around 4,800 of these had paid by card, with around 4,000 of those apparently able to claim money back.

However, KPMG warned that the other 1,800 customers would become unsecured creditors and as such were unlikely to receive any reprimance.

The administrator also confirmed that it had received 159 expressions of interest from various firms.

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