Retail giant Arcadia says it’s no longer accepting gift cards as a single payment method, as administrators prepare to wind the company down after its collapse on Monday.
The fashion empire – owned by Sir Philip Green – crashed into administration earlier this week, prompting fears 13,000 jobs could be lost and 444 stores across the UK could cose.
Administrators Deloitte said the company is trading as normal – with all Black Friday purchases being honoured, however it’s now issued a warning on gift cards.
A spokeswoman said gift cards are currently not being accepted due to a technical outage.
However, when stores start trading again, vouchers at Topshop, Dorothy Perkins and Miss Selfridge will only be applicable on up to 50% of the total spend.
This means the remaining balance must be covered by cash or card.
Adam French, Which? Consumer Rights Expert, said: “Topshop and other Arcadia brands collapsing into administration is yet another serious blow for the high street in what has been a torrid year for retail.
“We would advise any consumers who have vouchers to think about spending them as soon as they can.
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“If there is something you are planning to buy from Topshop or other affected brands that is worth more than £100, make sure you use a credit card as you’ll be able to make a claim against your credit card company to recover the money if anything goes wrong.”
The latest rules affect all eight Arcadia brands which include Topman, Burton, Evans, Outfit and Wallis.
Deloitte added that gift cards are no longer being sold as it seeks a buyer to rescue the ailing business.
Speaking on Arcadia’s collapse earlier this week, Ian Grabiner, chief executive of Arcadia, said: “This is an incredibly sad day for all of our colleagues as well as our suppliers and our many other stakeholders.”
The administrators will be “assessing all options available”, which could see brands sold off in separate rescue deals.