Furious Boohoo and Debenhams customers waiting a month for refunds

Telegraph

2 days ago

Boohoo customers are facing unexplained delays for refunds of up to a month as the fashion retailer attempts to navigate financial pressures.
In social media posts, dozens of customers of Boohoo brands, which also include Debenhams and PrettyLittleThing, have complained that they sent back goods as long as four weeks ago but their money has not been returned.
One Debenhams customer said that she had not been given a £160 refund for a wedding dress, which had been returned to the retailer on May 1. She said: 'I have now escalated this to the Financial Ombudsman as this is utterly and completely awful.
'No other company takes over a month to refund returns, this includes companies who have to ship from abroad.'
Another told Boohoo on X: 'Your service is disgusting! I ordered and returned some items within 2 days of getting them. My refund was supposedly actioned on May 20, we're now June 1 and still nothing? And supposedly no complaints procedure? Awful company!'
A third said: 'I sent a return back three weeks ago, you've sent me an email to say you've had it over a week and still haven't issued a refund! Won't be using ever again.'
On its website, Boohoo said that refunds for returns can take up to 14 days from the date goods were posted back.
A company spokesman acknowledged that it was paying refunds more slowly than usual, but did not offer an explanation for the delays.
Boohoo said: 'We're aware that some customers haven't received their refunds as quickly as usual and we're working to resolve that.'
Customers are facing frustration at the same time as Boohoo is attempting to refinance its debts against a backdrop of falling sales and tough competition from Chinese rivals Shein and Temu.
Boohoo, which has announced plans to adopt Debenhams as its corporate brand, is in talks to replace up to £175m of borrowing with new loan commitments that are expected to come at a higher cost. An agreement threatens to increase the pressure on the business, which has been making deep job cuts and in March reported a 16pc drop in sales.
Clive Black, a retail analyst at Shore Capital, said customers and investors were likely to take note of the delays to refunds.
He said: 'It will ring the alarm bell. Given that they are an online business with a customer base that is young and savvy on social media, it won't take long to get around like a virus. It can be a vicious circle.
'Businesses will use all kinds of tactics ... in terms of delaying movement of cash, but this is a big no-no. It can be very brand-damaging. It's a sign of weakness.'
Boohoo declined to respond to Mr Black's comments and did not answer questions about its cash position. It did not comment on whether delays to refunds were linked to its financial challenges or say how long it expected them to continue.
A spokesman said Boohoo was 'pleased with the progress we're making'.
The company said in March it expected to report adjusted underlying earnings of £40m for the year that ended in February. It repaid £50m of a £97m loan in December using the proceeds of a share placing.
Boohoo, which was co-founded by executive chairman Mahmud Kamani, now includes the labels Wallis, Burton, Misspap, Coast, Oasis, Dorothy Perkins and Warehouse, as well as Debenhams.