Mothercare customers are being warned to use up their gift cards now, after the company said it will go into administration in the next 48 hours.
The chain, which announced it was selling its UK arm on Monday morning, said it would collapse into administration in the next two days.
While the retailer continues to operate as normal, if it does go into administration, gift cards and refunds could cease to be valid.
This could also include website orders - which would close, potentially leaving thousands of customers with outstanding purchases in limbo.
"Mothercare's potential collapse is all the more concerning because countless parents across the land will have been given vouchers and gift cards by friends and family," said James Walker, founder of consumer rights website Resolver.co.uk.
"I can't emphasise this enough: Spend them now. If Mothercare goes in to administration, chances are they'll be worthless.
"As money is usually refunded to the card of the person who paid for the vouchers, speak to whoever bought them for you. Failing that, get down to the shop and spend them."
When it comes to making purchases, shoppers are being warned to pay on plastic - as opposed to cash.
"Avoid paying by cash, cheque or direct transfer. You've got no rights to recall your money if this happens. Always question businesses that ask for payments this way and don’t pay if you can’t afford to lose it."
Refunds and exchanges are still being accepted in all stores - however this could also change if Mothercare folds.
"If you’ve bought something that doesn't work but the retailer goes bust, you’ll need to go to the manufacturer to see if you can get a repair, replacement or refund," Walker said.
"If you’ve not received your goods then ask for a ‘charge back’ from your card provider urgently.
"If you’re worried you’ve been stitched up by a dodgy retailer, speak to your local Trading Standards officer – they’re based in the council offices. They can let you know if there’s a wider problem and can investigate the business if they think there’s a cause for concern."
What happens to your order when a company collapses?
You can’t ever guarantee that a firm won’t go bust, but here are Resolver's tips on what to do if a company collapses with your money:
Chargeback
First things first, call your bank and ask them to ‘charge back’ your money. Explain this is urgent and that the business is going in to administration.
Chargeback is an agreement between card providers and can be used on payments made by debit or credit card. Your bank should try to get you the cash back as soon as possible.
However, if the administrators have closed the business’s accounts, it may be too late.
So don’t delay. If your card provider makes a mistake or fails to recall your cash, you can make a formal complaint through Resolver.
If you paid by credit card
You've got lots of statutory protection if you pay for goods or services using a credit card.
There’s a nifty law called the Consumer Credit Act that says if you pay for things on a card that cost over £100 and less than £30,000 you could claim the money back from the card provider.
You don’t even need to have spent the whole amount on the card as long as the deposit falls within the limits. This is known as making a claim under ‘section 75’.
If you paid by debit card
It’s not a legal right, but the card providers run a scheme called 'chargeback' which means you might be able to ask them to recall your money if there’s a problem.
But act quickly. If a firm goes bust it may be too late. Using electronic money services like PayPal also gives you some rights, but read the dispute resolution rules first.
