// M&Co unsecured creditors and suppliers to receive “less than a penny in the pound” of the £40.6m owed
// Administrators Teneo said due to insufficient funds, any repayments are “likely to be very low”
M&Co’s unsecured creditors and suppliers are set to receive less than a penny in the pound of the £40.6m that are owed to them following the retailer’s collapse in December.
Administrators Teneo said in its report that it was unlikely that sufficient funds will be recovered, meaning any repayments are “likely to be very low”.
It added that the total figure owed to creditors is expected to be higher than £40.6m as certain liabilities including “intercompany creditors and landlord claims” had not been taken into account.
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Unsecured creditors can be paid a maximum amount of £800,000 from an insolvent business, which is referred to as the “prescribed part”.
Teneo said: “We estimate that a dividend under the prescribed part is likely to be made to unsecured creditors, however, having regard to the size of the claims against the company, the amount of any such dividend is likely to be very low, i.e, less than a penny in the pound.”
The retailer plunged into administration in December after rising costs pushed it over the brink.
Yours Clothing owner AK Retail Holdings snapped up the brand and intellectual property in February, resulting in 170 store closures and 1,910 job losses.
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