Written by: Keith Tully
Published: 30th May 2013
In October 2012, Wigan-based firm JJB went into administration resulting in more than 2,000 job losses nationwide.
The sports clothing and equipment retailer had been struggling for a number of years due to the economic downturn and had no other choice but to appoint administrators KPMG.
Now it has been revealed that £2.4 million in fees has been racked up for work on a pre-pack administration, according to a new report.
The administrators are claiming the fee for 6,993.41 hours of work, for time spent on the company between 1st October 2012 and 31st March 2013. This is not including a £180,000 charge for pre-administration work.
What’s more, Herbert Smith Freehills, the solicitors, are also owed £188,848.70 for their pre-administration work; and unsecured creditors are outstanding around £212.2 million.
The administration was scheduled to end on 30th September this year but KPMG has applied to the courts to extend this timeframe by 24 months, to ensure all unsecured creditors are paid. It has been claimed however, that only £600,000 is available for repayment to them.
The total expense of the administration is £2.1 million in addition to;
KPMG managed to save 550 UK jobs by selling 20 of the JJB stores as well as the brand to arch rival Sports Direct International, for a sum of £23.77 million. However, the remaining 133 stores were closed leading to 2,200 redundancies.
The administrators stress that they examined all possible options to save the company and secure repayment to creditors including winding down the firm, a pre-pack sale, and further funding to avoid an insolvency process- but to no avail.
Find the answer to your business problem with the experts here at Real Business Rescue. We are fully accredited and experienced in business insolvency and we might be able to save your business.
For confidential free advice, please call 0800 231 6040 or fill in the quick and easy form on our contact page.
3rd August 2021
The UK’s construction industry is facing a “perfect storm” of supply shortages in the coming months, which will likely leave companies struggling to meet demands for their services.Read More
28th July 2021
The number of UK companies in positions of ‘significant financial distress’ were up 24 per cent at the end of the June 2021, as compared to the same point of last year.Read More