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What does bridal shop failure mean for customers who have paid deposits?
SUSAN EDMUNDS
Last updated 11:39, July 29 2016
Thousands of dollars paid in deposits on wedding dresses may not be returned.
Bad news for brides who have paid a deposit on dresses at failed Auckland bridal boutique Primrose and Finch: They may not see the money again.
The shop shut without warning and a liquidator was appointed on Wednesday.
But many people have paid thousands of dollars for dresses they had not yet received.
Brides-to-be would visit the Parnell shop, trying on sample dresses before choosing their favourite, which would be shipped to the boutique by the designer and custom-fitted.
READ MORE:
* Auckland bridal boutique Primrose and Finch leaves brides in the lurch
* Leading American designer expresses shock over liquidated bridal dress shop
Bryan Edward Williams, of BWA Insolvency, said he had received about 45 phone calls from "disappointed brides" on Friday morning and the calls were still flooding in.
But these customers could be in for a shock because their claim for a refund will probably rank at the bottom of the business' debts.
As the business' assets are sold, first to be paid will be secured creditors who have loaned the company money, such as banks.
Then will come employees owed wages or holiday pay, and any tax owed to Inland Revenue.
Finally, any money left over can go back to customers and others who are owed money or goods.
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If people had paid a deposit on a dress, they could try to claim it back but Consumer NZ said those claims were considered last because there was no security offered when the money was paid.
"To pay for something before you receive it is, in effect, to make an unsecured loan."
To try to do so, customers should contact the liquidator or receiver to make a claim as soon as possible.
If the deposit was paid by credit card, it might be possible to claim a "chargeback" via the credit card provider.
Any customers who had a lay by could pay for and collect their purchases if their payments were up-to-date. It is best to do this quickly.
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