M&Co suppliers all but wiped out, will get less than 1p per £1 owed
The failure of M&Co hasn’t only been bad news for its staff and the towns where it had stores. Its suppliers are also up against it and news emerged on Thursday that they’ll receive less than a penny in the pound.
A reported filed at Companies House by its administrators at Teneo said non-preferential unsecured creditors are owed £40.6 million, with suppliers being part of the unsecured group.
That figure could increase when other liabilities — including money owed to landlords — are taken into account.
And Teneo said that the maximum that can be paid to such creditors of an insolvent business is £0.8 million, known as the “prescribed part”. Beyond that, “it is unlikely that sufficient funds will be realised to enable any distribution to be made to unsecured creditors”.
The company went into administration in December and the brand and intellectual property were acquired for an unspecified sum by Yours Clothing owner AK Retail Holdings. But the 170 stores it operated weren’t part of the deal and finally closed in April.
Nearly 2,000 jobs were lost as a result with the closures adding to the huge tally of retail jobs that have been shed in recent years, as well as creating more empty retail space.
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