Vergo - MCR Statement on Customer Orders
Vergo Retail Limited (In Administration) ("Vergo") or ("the Company")
Updated: 2 June 2010
Introduction and overview
Sarah Bell and Steven Muncaster of MCR were appointed as Joint Administrators ("Administrators") to Vergo Retail Limited on 7 May 2010. Both Administrators are licensed by the Insolvency Practitioners' Association.
The affairs, business and property of the Company are being managed by the Administrators, who act as agents of the Company and without personal liability. The role of the Administrator is to deal with the business and assets of the insolvent estate. Their role is not to replace the Directors of the Company nor are the Administrators accountable for the management of the business prior to their appointment.
Following a detailed review of all customer orders the Administrators have confirmed that regrettably the Company does not have the financial resources to fulfil any customer orders. Please see the ‘Frequently Asked Questions' section below for further details.
The stores will continue to trade in the short term and the Administrators continue to discuss a sale of some or all of the business with a number of prospective purchasers.
The business and/or assets of the Company will be sold in order to raise funds to distribute to creditors in the prescribed order of priority as set out in the Insolvency Act 1986 ("IA86").
Broadly, the order of priority is as follows (this is indicative only):
(1) - Preferential Creditors (certain categories of employee claims).
(2) - Prescribed Part distribution to Non-Preferential Unsecured Creditors (includes customers, suppliers and concession/pay on sale creditors) this is capped at £600,000 in accordance with the IA86 to share equally between ALL unsecured creditors.
(3) - The Secured Lenders (who have registered charges over the Company or its assets).
(4) - Non-Preferential Unsecured Creditors (includes customers, suppliers and concession/pay on sale creditors).
Further details will be provided in the Administrators' report and proposals which will be made available within 8 weeks of 7 May 2010 in accordance with the IA86.
Customers who paid a deposit or in full and received no delivery or incomplete delivery
CREDIT CARD AND VISA DEBIT CARD PAYMENTS
Customers should contact their card issuer to initiate a charge-back of any sums paid. Please note the timing and quantum of charge-backs by the card issuers is beyond the control of the Administrators and no assistance can be provided in this regard. However the Joint Administrators are working with the Company's merchant service provider to ensure all claims are valid.
CASH, CHEQUE AND NON-VISA DEBIT CARD PAYMENTS
Customers will have a non-preferential unsecured claim in the administration. To lodge a claim please complete a Proof of Debt form and return it to the Administrators as quickly as possible. At this stage in the administration it is not possible to confirm whether there will be funds available to unsecured creditors or the timing of any payments.
INTEREST-FREE AND OTHER CONSUMER CREDIT ARRANGEMENTS
Customers who made arrangements to pay for their order using any form of interest free or other consumer credit and who have not received a delivery should contact the finance provider in the first instance. The customer should not be required to make payments under any such arrangements.
Frequently Asked Questions:
Q. Will my outstanding order be fulfilled?
A. It is not possible for the Company to fulfil any outstanding orders. There will be no exceptions to this due to the financial position of the Company.
Q. There are goods in the store similar or the same to the product which I have ordered, can I take these?
A. The Company is insolvent, it has insufficient assets to meet all of its liabilities. Insolvency legislation states that all non-preferential unsecured creditors of the Company (categories (2) and (4) above) must be treated equally. Therefore it is not possible to allow customers to take Company property in satisfaction of the amount which they are owed. All property of the Company has to be sold in order that the proceeds can be made available to its creditors. This also means that any money paid prior to 7 May 2010 cannot be taken as payment towards any items remaining in store
Q. Can I cancel my order and get a refund?
A. Cancelling your order will not make any difference to the way you claim in the Administration. In order to claim, please either contact your card issuer or file a Proof of Debt Form as described above.
Q. Can I contact a supplier directly to fulfil my order?
A. Supplier details are not available to customers.
Q. Will I be contacted by the Administrators?
A. All creditors of the Company will receive the Administrators' report and proposals before 30 June 2010. Further details of the financial position of the Company and the outcome for creditors generally will be provided in this report. To ensure that the Administrators have your details, please submit a Customer Order Form if you have not done so already. Where Company records allow, customers will be contacted in writing to confirm non-delivery of their orders.
Q. How long will I need to wait for my refund, I paid by cash/cheque/non-VISA debit card?
A.You have a non-preferential unsecured claim in the Administration. It is likely to be several months before the Administration is concluded and the level of funds available to customers is known.
Q. How long will I need to wait for my refund, I paid by credit card?
A. Please contact your individual card issuer directly as this is outside of the control of the Administrators. The Administrators are dealing directly with the credit card processing company to ensure all valid chargeback claims can be dealt with as quickly as possible.
Q. Can the Company repair my goods, they are still under warranty?
A. The Company cannot fulfil any warranty obligations. The Administrators advise customers to contact the manufacturer in the first instance; if the manufacturer cannot assist then you will have a non-preferential unsecured claim in the Administration for which a Proof of Debt Form must be completed.
Q. I purchased an extended warranty, is this still valid?
A. As the Company is insolvent it is unable to honour any warranty agreements. Any customers who purchased an extended warranty should complete a Proof of Debt form.
Q. I have an outstanding claim for damage or other financial compensation against the Company, what happens?
A. You will have a non-preferential unsecured claim in the Administration, please complete and return a Proof of Debt form.
Q. What happens to my order if the business or store is sold?
A. Any purchaser of the business will not be obliged to fulfil orders as it is likely that they will purchase the business and assets of the business, but not its liabilities.
Forms Available to Download:
A Customer Order Form can be downloaded here
A Proof of Debt Form can be downloaded here
Please note that all Customer Order Forms and Proofs of Debt must be returned to:
MCR
11 St James Square
Manchester
M2 6DN
By the Administrators
