Thousands of customers who placed orders with a UK fashion retailer that collapsed late last year are unlikely to receive either their goods or a refund, administrators have confirmed. Huh. Ltd, which traded online as Huh. Store, was placed into administration in November, leaving almost 5,000 customers out of pocket. Official documents show the company owes £162,319 to 4,983 customers, but administrators say it is unlikely unsecured creditors will recover a single penny.
Just three weeks before the collapse, owner Jack Lowe publicly assured customers that anyone owed money would be repaid. However, administrator Maxwell Davies has now said that this outcome is highly unlikely due to the company's financial position.
According to proposal papers lodged with Companies House, the business collapsed with total debts of around £575,000, while holding assets of just £56,060, including cash and stock, the Mirror reported.
Administrators' costs alone are estimated at £58,781, meaning there is little prospect of funds being available for customers.
HMRC is owed £73,310, while Danish furniture supplier Hay APS is due around £111,000, making them among the firm's largest creditors.
Administrator Ruth Ellen Duncan said she is now investigating how the company was run in the period leading up to its collapse to determine whether any assets can still be recovered.
“I am pursuing a detailed investigation into the affairs and trading activities of the company to identify any potential assets that can be realized 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 added that creditors with concerns about the way the business was conducted or information about potential recoveries are encouraged to come forward.
The company came under growing scrutiny in the months before its collapse after receiving nearly 3,000 one-star reviews on Trustpilot, with customers complaining of undelivered orders, unprocessed returns and a lack of communication.
Mr Lowe, 38, previously blamed the problems on supply chain issues, saying the loss of a major supplier caused a backlog of orders to “snowball”.
He said the breakdown in the relationship led to products being removed from the website and claimed he was working “around the clock” on his own to process refunds.
Despite mounting complaints, Mr. Lowe continued to take orders and did not place a warning notice on the website. Asked why, he said he feared it would deter future customers, adding at the time: “Everything is fine now, and orders are as they should be.”
However, a report by administrator Maxwell Davies states the business suffered a sudden collapse in revenue after losing a key supplier in September, leaving 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, initially operating from a single shop in Hackney selling fashion, homeware and coffee. The business expanded into online retail, opened a London flagship store through brand collaborations and later relocated to Canterbury.
Administrators say Covid lockdowns forced the closure of physical stores but drove a boom in online homeware sales, making 2020 the company's most profitable year. The business returned to losses in 2021 and survived through directors' loans, a VAT time-to-pay arrangement and £100,000 of shareholder funding.
Customers affected by the collapse have been advised by administrators 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.