The Shutters Come Down: Getting Your Money Back When a Retailer Fails in 2026

You check your emails and see the news: a shop you use has called in administrators. Maybe you have a gift card in your wallet, a refund that has not landed, or a sofa you paid a deposit on. Your first thought is probably a very reasonable one: has my money just vanished?

Not necessarily. Some routes get you paid faster than others, and some are little more than a place in a very long queue. The trick is to work out which category you are in before you spend hours chasing the wrong thing.

First, make a list and save the evidence

Before the website goes dark or your account gets locked, gather proof. Screenshot your order confirmation, your gift card balance, the tracking page, the refund email, and the relevant bank or card statement. Save copies somewhere you can find them later. A tidy folder called something like 'retailer collapse' is deeply unglamorous and very useful.

Also note the administrator's name. Insolvency practitioners usually put a notice on the retailer's website, and the Insolvency Service and Companies House are worth checking. That administrator is the person who will deal with claims if the company cannot pay its debts.

Gift cards: a paper promise near the back of the queue

A gift card feels like cash, but legally it is a promise to provide goods or services. When a retailer collapses, the administrator may choose to honour gift cards to keep some goodwill and keep stores trading. They do not have to.

If the shops are still open under the administrator, using the card quickly may be the simplest option, provided you were going to buy something anyway. Do not buy extra items just to use up a balance. If the card is no longer accepted, keep it and register your claim with the administrator. A gift card balance is generally an unsecured claim, which often means you get little or nothing back. It is still worth registering, but do not pay a claims firm a fee to chase a £30 balance.

If you bought the gift card very recently by debit or credit card, ask your card issuer whether chargeback is possible. It is not guaranteed, but it costs nothing to ask.

Refunds and deposits: act before the trail goes cold

If you are waiting for a refund, or you paid a deposit for goods that will now never arrive, check how you paid. This matters much more than how loud your complaint is.

Paid by credit card? For purchases between £100 and £30,000, Section 75 of the Consumer Credit Act 1974 may make the credit card provider jointly liable with the retailer. That is a legal protection, not a favour. It can cover deposits and failing to supply goods, though there are limits and it does not cover everything.

Paid by debit card? Chargeback may be available. This is a card scheme process rather than a legal right, and time limits apply, so contact your bank promptly. Paid by bank transfer or cash? You are likely an unsecured creditor. Register your claim, but keep your expectations realistic.

Undelivered goods and surprise parcels

If you paid for something that has not arrived, contact the administrator and your card issuer. Do not assume a refund is automatic just because the retailer has collapsed.

What if a parcel turns up after you have already been refunded? Tell the administrator or your card issuer. Keeping both the refund and the goods is not the aim here. If you cancelled the order before the collapse and a parcel arrives anyway, keep it unopened, take photos, and ask the administrator what they want you to do. Do not sell it on or treat it as a free gift without checking.

Section 75 and chargeback in plain English

Section 75 is the stronger route when it applies. It is for credit card purchases of £100 to £30,000, and it makes the card issuer jointly responsible. You can raise it even if the retailer has gone bust. Contact the card provider in writing, include your evidence, and say clearly that you are making a Section 75 claim.

Chargeback is the debit and credit card scheme route. It can help with undelivered goods, faulty items and some refund failures. It is not a legal right, and banks apply scheme rules and time limits. In practice, many people try chargeback first because it is quicker. If Section 75 applies and chargeback fails, you can still pursue the Section 75 route.

Do not let a call handler tell you that you must wait for the administrator to refuse you first. Ask for the complaint to be escalated, and keep a note of dates and reference numbers.

Proving your claim as an unsecured creditor

If card protection is not available, you may need to submit a proof of debt to the administrator. This is usually free. You will need to show what you are owed, why, and when. Order confirmations, receipts, bank statements, emails and screenshots all help. Include the order number and your contact details.

Being an unsecured creditor means you are near the back of the queue. Secured creditors and certain priority debts come first. You may receive pence in the pound, or nothing. That is frustrating, but it is still worth registering a claim for a larger loss. For a small amount, weigh up the time involved. Spending £60 of your time to chase a £25 gift card is not a good use of an evening.

Be wary of any company that offers to recover your money for an upfront fee. You can submit a claim yourself, and free advice is available from Citizens Advice and the Insolvency Service.

A quick first-week checklist

• Save your order confirmations, receipts and card statements.
• Check whether the store is still trading under the administrator.
• Contact your credit card provider about Section 75 if it applies.
• Ask your bank about chargeback for debit card payments.
• Register your claim with the administrator if card protection is not available.
• Keep gift cards, packaging and any surprise parcels.
• Watch out for phishing emails pretending to be from the administrator.

The main thing is not to panic and not to pay good money after bad. Work out what you paid, how you paid, and which route gives you the best chance. A collapsed retailer is annoying, but a clear list and a quick call to your card provider can make it a lot less painful.