Online retailer Studio to appoint administrators – what it means for orders and returns

The company first revealed plans to go into administration on 14 February after last month issuing its second profit warning due to transport delays and rising shipping costs. Studio added that a request for a loan to help it shift surplus stock had been denied. 

At the time, there was very limited information available about what the decision meant for shoppers. However, Studio has today (17 February) provided further details. Below is what we know.

For more general info, you can also see our Administration help and Consumer rights guides.

New orders can't be placed

You currently can't place any new orders on the Studio site, either to pay in full or via a Studio Pay credit account.

Some orders already placed are still being processed and delivered 

Studio has confirmed that all outstanding orders are being stored at its warehouse:

• If you're a Studio Pay credit account customer - you will receive a confirmation email once your order is dispatched. If for whatever reason your order isn't able to be sent, Studio will credit your account.  

• If you pay in full at the checkout, ie you don't use a Studio Pay credit account, you will receive a confirmation email once your order is dispatched. If for whatever reason it can't dispatch your order, it will get in touch with you separately - though Studio wouldn't confirm if refunds would be provided. 

If you don't get your goods or a refund, you may still be able to get your money back if you paid by credit or debit card:

• Under Section 75 of the Consumer Credit Act, if what you purchased cost more than £100 and you paid all, or even just some of the cost, by credit card, then your credit card company is as equally liable as the retailer if something goes wrong. See our Section 75 guide for more on this.

• Under chargeback, if you paid on a Visa or Mastercard debit card for any amount, or Visa, Mastercard or American Express credit card for goods under £100, you can submit a 'chargeback'. However, unlike Section 75, this isn't a legal requirement and you must submit the chargeback within 120 days of purchase. See our Chargeback guide for more info. 

If Studio does stop trading and you didn't pay for your goods on credit or debit card, or you're struggling to get your money back via these avenues, you may have to apply to the administrator to get your cash back – and even then there's no guarantee you'll see a penny as you'll likely be bottom of the list of people owed money by the firm.

You can return items you don't want as normal - for now

Studio says you can continue to return undamaged items you no longer want through its normal returns process, which can be found on its website. Though do bear in mind that if the company goes back into administration it may stop processing returns and refunds and your only option would then be to register as a creditor with no guarantee of getting your money back. 

If you want to return a damaged or faulty item, you can contact Studio's customer services team, either via its contact form on its website or by calling 0371 200 0378.

You should continue to make repayments 

For the time being, Studio has confirmed that shoppers who owe money on their Studio Pay account should continue to make repayments as planned to avoid a late payment fee of £12.