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M&Co suppliers to receive ‘less than a penny in the pound’ following administration

M&Co store front

M&Co suppliers and unsecured creditors are set to receive “very low” repayments following the retailers collapse in December last year.

According to a report filed at Companies House, unsecured creditors are owed a total of £40.6 million, which includes money owed to suppliers, resulting in them being paid less than a penny in the pound.

Administrators Teneo added that the total figure is predicted to be higher due to certain liabilities haven’t being taken into account including “intercompany creditors” and “landlord claims”.

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However, it continued that it was unlikely that funds will be recovered, indicating that any repayments are “likely to be very low”.

“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,” Teneo said in a statement.

The news follows the fashion retailer plunging into administration in December last year, with AK Retail Holdings acquiring the brand its intellectual property in February, resulting in 170 store closures and around 2,000 job cuts.

Recently, over 90 M&Co employees revealed they are to take legal action against the retailer, claiming there was “no advance warning” of redundancies amid the collapse.

Image credit: Shutterstock

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