Austin Reed’s unsecured creditors are set to face big losses due to the collapse of the high street retail chain, according to documents filed at Companies House.
The documents filed by the collapsed heritage retailer’s administrators, Alix Partners, reveal the company’s unsecured creditors will recieve just 2p for every £1 invested – or £600,000 ot be shared between them.
Austin Reed, which entered administration at the end of April, owes its unsecured creditors £30.24 million.
However, secured lenders Wells Fargo and Alteri Investors will be better off. Wells Fargo anticipates its £7.24 million debt will be repaid in full, while Alteri Investors is owed £18.24 million and expects to “suffer a significant shortfall”.
Alteri Investors specialises in distressed retailers and took over Austin Reed just weeks before its collapse.
The failure of the 116-year-old retailer, which employed around 1200 people, came just days after the collapse of department store chain BHS.
While Edinburgh Woollen Mill owner Phillip Day acquired the Austin Reed and Country Casuals brands plus five concessions in Boundary Mills outlet villages, the rest of Austin Reed’s chain has been wound down.
