MK One owes creditors more than £50m
- Published: 21 July 2008 10:23
- Author: Ana Santi
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- Last Updated: 21 July 2008 10:27
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MK One, the value chain that went into administration in May, owes creditors and suppliers more than £50 million.
But Deloitte & Touche, MK One's administrators, have warned that unsecured creditors will receive a maximum of 1p for every £1 they are owed, according to The Daily Telegraph.
A report by Deloitte revealed that MK One made a pre-tax loss of £20m in the year to January, despite an increase in sales from £118m the previous year to £123m.
The report said: "A further £10m was injected into the company over the period from January to April to enable the company to pay for suppliers, essential operating expenses and salaries. However, the company's performance continued to deteriorate and the funding injections were almost immediately exhausted."
According to the report, 100 stores have been sold to Jet Star for £7.1m. Jet Star is connected to former MK One director and shareholder Mark Brafman.
