If a company stops trading or goes out of business
This page is framed for consumers under the law of England and Wales only. Rules and registers can differ in Scotland and Northern Ireland.
You may be left without the goods or services you paid for when a business stops trading, enters insolvency or simply disappears. There are several practical routes to try to recover money or complete the transaction, but there is no guarantee you will be repaid in full—especially if the business has little or no money left after secured creditors and costs.
Sole traders and partnerships
A sole trader or partnership that stops trading is still the contracting party for work or goods you have paid for. Start by calling, writing or visiting if you can: explain what you ordered, what you paid and whether you want delivery or a refund. Keep copies of receipts, contracts and messages.
If you cannot reach the business
To check whether a limited company still exists or is in an insolvency procedure, search the public record (for example via GOV.UK: get information about a company). For individual insolvency (including some sole traders) or certain partnerships, the Insolvency Service maintains registers you can search—it can take time for entries to appear after a formal procedure starts.
What you find should guide your next step: who is handling the estate (liquidator, administrator, trustee) and how they ask creditors to prove debts.
Package holidays and travel
If you booked a package or flight‑plus holiday, protection schemes may apply. Industry bodies such as ABTA publish information when member firms fail; if your booking was sold with ATOL protection, the Civil Aviation Authority maintains lists and guidance on ATOL protection. Your paperwork should show whether ATOL or other cover applied.
When an administrator or liquidator is appointed
Insolvency practitioners usually publish contact details and deadlines for creditor claims. Note the name of the firm handling the case; you will need it for correspondence and any online forms.
General guidance on making a claim in an insolvency is published on GOV.UK: claim money you are owed by a person or business. Follow the practitioner’s instructions as well: missing a deadline can weaken your position.
Unsecured consumers are often well down the payment order. Banks and other secured creditors may be paid first, so you should assume partial or no recovery from the estate and run payment‑scheme routes in parallel where they exist.
Goods you collected in store before closure
If there is nothing wrong with the goods and you simply want your money back after the shop has closed, you may not have a statutory “change of mind” right against an insolvent seller. Check any written returns policy and ask the insolvency practitioner whether a goodwill process exists.
If you did not receive what you paid for
Your best route often depends on how you paid:
- Debit card — ask your bank about chargeback (scheme rules and time limits apply).
- Credit card — if the conditions for section 75 of the Consumer Credit Act 1974 are met, the card issuer may share liability with the supplier for certain breaches.
- Buy now, pay later — the agreement is with the BNPL provider; check their disputes process and whether chargeback is available on the underlying card.
Our page on card, PayPal and chargeback walks through evidence and wording we often help clients prepare.
Faulty goods, warranties and unfinished work
If you already have goods that do not conform, or work was substandard, you may still pursue manufacturer warranties, insurance or guarantee chains even when the retailer is insolvent. An administrator may occasionally assist with repairs or replacements, but you should not rely on that.
Court and dispute resolution
Once a company is in formal insolvency, enforcement is often channelled through the insolvency process rather than ordinary county court claims. What is sensible depends on assets, the type of debt and limitation periods. Alternative dispute resolution or ombudsman schemes may still be relevant in regulated sectors. Where the picture is unclear or the sum is large, we signpost regulated solicitors.
We help you build a clear chronology, choose between overlapping routes and draft letters or creditor forms that match your facts. We are not a law firm and do not conduct reserved work on your behalf.