Voucher collapse cost retailers £60m

When voucher scheme company Choice Gift Vouchers went into administration it left retailers with a £60m. Fashion retailers such as JJB Sports, Arcadia (Top Shop et al), New Look and BHS are owed as much £60m by the voucher-clearing house, which provides vouchers to savings clubs and hamper companies. Individually, several retailers in the scheme are believed to be owed seven-figure sums. Savings clubs allow shoppers to speak the cost of Christmas and special occasions by paying a small amount each week in return for vouchers, which are issued at a later date.

Value fashion retailers are likely to have been hit hardest by the collapse as shoppers who use the voucher scheme tend to be from low-income groups. Retailers have been warned not to accept any more Choice vouchers from shoppers, and shoppers are being advised to seek reimbursement from the company that sold the vouchers originally. Ian Stokoe, administrators at PriceWaterhouseCoopers, said he was confident creditors would get something close to 60p in the £1. "We have already had interest in the business from other similar voucher companies that would like to get Choice's high street partners into their schemes," he added.