// The organic grocer owed over £12.5m to creditors ahead of a rescue deal by Bioren Limited
// Over 400 unsecured creditors will not receive the owed amount in full
Planet Organic owed over £12.5 million to its creditors ahead of the rescue deal that saved 10 of 14 supermarket stores.
In April, Bioren Ltd, whose shareholders include the organic supermarket’s founders Renee and Brian Elliot, paid £810k to close the deal.
However, according to a new report by administrator Interpath Advisory, over 400 unsecured creditors will not receive the full £8.4m that they are owed, The Grocer reported.
Although, a small dividend is expected to be paid back.
The businesses waiting on the largest sums include speciality wholesaler Wholegood, which is owed £428k and independent supermarket As Nature Intended, which is owned £1.5m.
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The additional £4.1m is owed to secured creditors Lloyds and Triodos, with Lloyds expecting full re-payment.
Triodos, however is unlikely to receive payment in full.
Over 40 shareholders are expected to lose on shares with a combined total of £5.8m.
Planet Organic also owes £27,000 in holiday pay, pension benefits and wages to staff which is expected to be paid in full. However, as a result of four stores closing with immediate effect as part of the transaction, 64 staff members lost their jobs.
The business first began struggling in 2020 as Covid-19 restrictions led to a 60% decline in footfall at two of its best performing stores, the report said.
As high cost inflation and overhead costs added to the pressures, Interpath Advisory, which had been overseeing efforts to find a buyer for Planet Organic, approached more than 200 potential sources of funding.
While Waitrose was understood to be making an agreement to inject millions of pounds into Planet Organic, the upmarket retailer pulled out of talks in March.
In April, Holland & Barrett owner LetterOne and Sainsbury’s were also both in talks about a last-minute rescue bid.
However, following the rescue deal by Bioren Ltd, the new management team is set to include Renee and Brian Elliot, former CEO Peter Marsh and former buying director, Al Overton.
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