Watchdog ‘disappointed’ as Arcadia limits gift card spending

NORTHERN Ireland’s consumer watchdog has said it’s “disappointed” by a move restricting the use of gift cards for collapsed retailer Arcadia to half the value of an order.

Customers have been left unable to use gift cards online due to a technical issue since Arcadia Group plunged into administration on Monday.

The retailer owns brands including Topshop, Topman, Dorothy Perkins and Burton.

Now the firm’s administrators Deloitte have confirmed that gift cards can only be used to cover 50% of the price of their purchase. This would mean that someone with a £20 gift card would have to spend £40 to use it in full. Arcadia has said it is working to resolve the system issue to allow gift cards to be spent online from next week, but shoppers are able to use them in stores in the meantime.

Carmel Mcconville, interim chief executive at The Consumer Council, said: “This will be disappointing news for consumers as they will now have to spend additional money to use their gift card.

“We would encourage anyone who does have a gift card to use it as quickly as possible because while they are being accepted at present, these circumstances could change.

“As numerous well-known high street retailers have gone into administration in 2020, we encourage consumers who have gift cards for any retailer to use them as soon as possible and always check the expiry date.

“It is also worth checking with the person who purchased the gift card if they bought it using a debit or credit card, as they may be able to claim money back through their card provider.

“For more information contact The Consumer Council on 0800 121 6022.”

A spokesman for Deloitte said: “Gift cards remain valid in full across all the Arcadia brands. The full value of a gift card can be put towards up to 50% of a purchase.”

He added: “Gift cards are currently being accepted in all stores and customers will be able to use them online from early next week.”

Arcadia called in administrators on Monday, putting around 13,000 jobs at risk — which was followed a day later by Debenhams announcing it was starting a liquidation process after JD Sports pulled out of a possible rescue.

Arcadia’s brands appointed Deloitte to handle the next steps after the pandemic “severely impacted” sales across its brands.

Many staff work at concessions in Debenhams, which has five stores in Northern Ireland. Arcadia staff are also employed in concessions at stores belonging to homegrown chain Menarys.