This week the future of Debenhams stores looks more uncertain than ever after it officially went into administration.
With branches likely to be closed, many shoppers will be wondering what will happen with their gift cards and orders they’ve made online.
A reassuring message appeared on the Debenhams website about the issue saying: “Debenhams is under new ownership and trading as normal. Shop with confidence - all orders, returns, refunds and gift cards are being honoured.”
But Eleanor Snow, a consumer rights expert at Which? told the Mirror that customers might want to move fast to return any items and use their gift cards.
She said: "Debenhams has long been a staple of the British high street so this is a worrying time for its customers and they may find their consumer rights are affected.
"If you have gift vouchers or have bought something you are intending to return, do this now as you may not be able to do so if the store ceases trading."
Although the website is still working and online sales are still happening, it is not uncommon for administrators to close down websites during transition periods to review assets.
The best way to pay
Another good piece of advice is for anyone shopping in Debenhams or on the company’s website to pay for their purchases using a credit card or services such as PayPal, which provide extra consumer protection.
Ms Snow said: "If you are planning to buy something for more than £100 in Debenhams, make sure you use a credit card so you can make a claim against your credit card company under Section 75 if anything goes wrong."
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Section 75 is a rule that gives the consumer a right to claim against the lender – their credit card provider - in circumstances such as misrepresentation or a breach of contract by the supplier.
What is happening with Debenhams?
Debenhams, which has 166 stores in UK locations including Nottingham and Leicester, went into administration on Tuesday morning after a £200 million rescue plan from Mike Ashley's Sports Direct was rejected.
Administrators FTI Consulting immediately sold the group's operating companies to a new entity owned by its lenders.
Debenhams' chairman Terry Duddy said: "It is disappointing to reach a conclusion that will result in no value for our equity holders.
"However, this transaction will allow Debenhams to continue trading as normal, access the funding we need and proceed with executing our turnaround plans, whilst de-leveraging the group's balance sheet.
"We remain focused on protecting as many stores and jobs as possible, consistent with establishing a sustainable store portfolio in line with our previous guidance."
What was the Sports Direct offer?
Earlier on Tuesday, Mr Ashley's Sports Direct had made a revised £200 million rescue offer for Debenhams, delaying the department store's administration.
The offer would have seen existing investors buying newly-issued shares.
In response, Debenhams said in a statement: "The board confirms that it received a revised, highly-conditional, proposal from Sports Direct in the early hours of April 9, which indicated a willingness of Sports Direct to underwrite an equity issue of £200m.
"The company's lenders have confirmed to the company that the proposal, on the terms set out, was not sufficient to justify an extension to the 8 April deadline."
