Store bankruptcies; what about down payments and guarantees?
The Dutch economy is cooling down, leading to more bankruptcies. A number of large, well-known retail chains have been declared bankrupt in recent months. For example, BCC, Big Bazar and the company behind dozens of Vero Moda and Vila stores could no longer keep their heads above water.
Impact on consumers
This has major implications for stores and staff, but also for consumers. Of course, you don't want to have paid hundreds of dollars for a product that you don't end up receiving.
What should you do if you are still waiting for a delivery from a bankrupt company? And how do you invoke the warranty now? These are questions many people are grappling with right now.
We list some important questions and answers for you:
What happens to my deposit and delivery of a product?
If you have paid a deposit for an order and the store goes bankrupt before you receive the product, there is nothing to do but wait and see. When a company goes bankrupt, the court appoints a receiver. He or she examines how much money and stuff is left and makes sure it is distributed to the creditors.
If you, as a consumer, are still owed a product or money by a company, you can report to the trustee in writing. Often there is information for this on the website of the company in question or you can find it at the Chamber of Commerce. The trustee may decide that the products can still be delivered. You are then obliged as a consumer to take delivery of the products. If the delivery cannot go ahead, you can report as a creditor and ask to get the deposit back.
Disbursement of debts goes in a certain order. Organizations such as the IRS and banks have priority. If there is any money left over after paying off those debts, then consumers are eligible to get money back. Consumers are at the bottom of the hierarchy, so they often draw the short straw.
What about warranty?
If a product breaks down in the foreseeable future, you are entitled to a warranty. If a company goes bankrupt, there is no longer a legal point of contact. In many cases, this means that you can no longer claim under the warranty. You can still turn to the manufacturer, but the manufacturer's warranty is often much less extensive. It is also possible that the company in question has placed the warranty with an insurance company. You can then report to the insurer.
Sometimes companies through an industry association have a guarantee scheme. Other companies within the trade association then partially take over the warranty. Only this also does not provide coverage in all cases. The exact interpretation of this varies by organization.
What does a business relaunch mean for me as a consumer?
A relaunch seems advantageous, but often only the store premises and inventory are taken over. The new owner is not required to take over current orders and warranty obligations.
What if I have given a product in repair to a bankrupt company?
If you have given something in repair and the company in question subsequently goes bankrupt, you can ask the receiver to return the product to you. This is because the product is not part of the company's assets and cannot be sold.
What can I do to avoid problems?
As a consumer, you don't always see a company's bankruptcy coming. Do you have doubts? Then you can check online whether a company is in a state of bankruptcy, for example on rechtspraak.nl. Negative reviews about undelivered products or poor customer service can also indicate that a company is in trouble.
