MANY CREDITORS of collapsed sports-wear retailer JJB Sports will receive virtually nothing, according to KPMG administrators.
JJB sports entered into a pre-pack administration, with Brian Green, David Costley-Wood and Richard Fleming, partners at KPMG, appointed joint administrators of JJB Sports Group, SSL Retail and Blane Leisure.
Unsecured creditor claims, such as those from suppliers, amount to £212.2m. This includes £29.9m to stock suppliers and £9.1m to landlords.
There will be a maximum distribution of £600,000 to unsecured creditors, with the administrators claiming there would be insufficient funds for a distribution to the shareholders of the formerly listed business.
In an administrators statement of proposals filed this week, it is also revealed that some secured creditors will suffer a "material shortfall".
It is suggested that JJB's lender Lloyds Bank is likely to be repaid in full.
The administrators' fees so far have amounted to £1.6m, representing 4,766 hours at an average hourly rate of £342.
The administrators will liquidate the business, with Green, Costley-Wood and Fleming to be appointed joint liquidators, unless the proposals are challenged.
Sign up for Financial Director email alerts
Please enter your email below to receive your profile link
Search by job title, salary, or location - we only list senior financial roles
Accountancy Age has partnered with Home Learning College to offer you and your trainees a personalised learning experience with an all inclusive package
Join Financial Director and Infor to discover how migrating your ERP resource to the cloud can have a beneficial impact on your company’s profitability
Send to a friend