// TM Lewin’s owner Torque Brands is likely to get back nearly 80% of the money owed it, but unsecured creditors will share just £600,000
// In 2020 Torque Brands bought TM Lewin’s online business via a pre-pack administration
Unsecured creditors, including suppliers, employees and landlords have been left £30.4 million out of pocket from the pre-pack administration of TM Lewin, a report from restructuring firm ReSolve Advisory has shown.
In May 2020, Torque Brands bought TM Lewin’s online business via a pre-pack administration for about £25 million and just seven weeks later its 66 shops closed permanently, resulting in 600 job losses.
READ MORE: TM Lewin: What went wrong?
Torque Brands is an investment vehicle led by James Cox, founder of Simba Sleep.
At the time, Cox said that lockdowns had meant the business was no longer viable in its present form and that it would focus on an online model instead.
The maximum prescribed part amount that can accumulate under the insolvency legislation is £600,000 in any one company.
In the report ReSolve said “it is not anticipated that there will be any distribution to unsecured creditors other than by way of the prescribed part distribution”.
Click here to sign up to Retail Gazette‘s free daily email newsletter
