Major brands like Ralph Lauren and Kurt Geiger are owed millions of pounds from House of Fraser and stand to make little back following its administration.
Figures emerged today of how much the embattled department store, which fell into administration last Friday before being bought by Sports Direct for £90 million hours later, owes its various suppliers.
Ralph Lauren’s Polo UK brand is understood to be owed £9.4 million, while Kurt Geiger is owed £4.8 million, Mulberry £2.4 million, Giorgio Armani £1.59 million, Phase Eight £3.4 million, Barbour £3 million, Warehouse £1.4 million, ScS Sofas £1.6 million, Superdry £236,000 and Aspinal of London £350,594.
Furthermore, XPO Logistics, which runs House of Fraser’s distribution centre in Wellingborough is reportedly owed a whopping £30.4 million.
Since the takeover XPO has ordered workers to stop accepting goods and processing deliveries over the pay dispute, leading to House of Fraser’s website being pulled and all orders and deliveries being cancelled.
Suppliers such as these brands are classed as unsecured creditors, which often receive just 2p to 3p on the pound back in administrations such as this. This would mean that Ralph Lauren would receive just £282,000 back on the £9.4 million it is owed.
It is understood that the majority of £90 million will be used to pay back banks and bondholders, leaving little for the remaining creditors.