Major UK fashion retailer collapses into administration owing customers £162k

Thousands of customers who placed orders with a UK fashion retailer that collapsed into administration late last year are unlikely to receive a refund, administrators have said. Huh. Ltd, which traded online as Huh. Store, was put under the control of administrators in November, leaving nearly 5,000 customers out of pocket.

According to official documents, the firm owes £162,319 to 4,983 customers, but administrators say it is unlikely unsecured creditors will get their money back. Just three weeks before the company collapsed, its owner, Jack Lowe, 38, publicly assured customers that anyone owed money would be repaid, it is reported.

Administrators’ costs alone are estimated at £58,781, meaning there is reportedly little prospect of funds being available for customers.

However, administrator Maxwell Davies has now stated that the company's financial situation makes this outcome highly unlikely, according to The Mirror. The business collapsed with total debts of around £575,000, with holding assets of just £56,060, including cash and stock, according to proposal papers lodged with Companies House.

HMRC is owed £73,310, while the firm's largest creditor, Danish furniture supplier Hay APS, is due around £111,000, the documents show.

Administrator Ruth Ellen Duncan said she is now investigating how the company was run in the period leading up to its collapse to establish whether any assets can still be recovered for creditors.

“I am pursuing a detailed investigation into the affairs and trading activities of the company to identify any potential assets that can be realised for the benefit of the creditors,” she said.

“This will require activities including meetings with the director, reviewing books and records, examining bank statements and seeking legal advice where required.”

She encouraged any creditors with concerns about the way the business was conducted or information about potential recoveries to come forward.

The company came under growing scrutiny in the months before its collapse after getting almost 3,000 one-star reviews on Trustpilot. Customers had complained of undelivered orders, unprocessed returns and a lack of communication.

Mr Lowe previously blamed the problems on supply chain issues, saying the loss of a major supplier had caused a backlog of orders to “snowball”.

He said the breakdown in the relationship led to products being taken off the website and claimed he was working “around the clock” on his own to process refunds.

Mr Lowe was asked why he continued to take orders and did not place a warning notice on the website, and said he feared it would deter future customers, adding at the time: “Everything is fine now, and orders are as they should be,” the outlet reported.

However, according to a report by administrator Maxwell Davies, the business reportedly suffered a sudden collapse in revenue after losing a key supplier in September, which left it unable to meet rent and refund obligations. The company was placed into administration on November 5.

Mr Lowe founded Huh. Ltd in 2011 using a £20,000 loan from his parents. It initially operated from a single shop in Hackney, selling fashion, homeware and coffee. The business expanded into online retail, opened a London flagship store and later relocated to Canterbury.

Administrators say Covid lockdowns forced an end to physical retail, but contributed to a boom in online homeware sales, making 2020 the company’s most profitable year.

However, the business returned to losses in 2021 and survived thanks to directors’ loans, a VAT time-to-pay arrangement and £100,000 of shareholder funding.

Administrators have advised customers affected by the collapse to contact their bank to request a chargeback, a form of refund available when goods are not delivered and a resolution with the retailer cannot be reached.

The Mirror approached Mr Lowe for comment. The Express has also contacted the owner.