Former East suppliers and other unsecured creditors owed money following its collapse into administration in June 2015 are likely to receive back 10p in the pound.
Unsecured creditors are owed a total of £3m, including £1m to HM Revenue & Customs and £1.3m to trade and expense creditors, which includes suppliers, according to a progress report filed by administrators Duff & Phelps at Companies House. It is not yet known how much landlords are owed.
A company called East Lifestyle bought certain parts of East in a pre-pack deal worth £3.4m in June 2015, shortly after it went into administration.
East Lifestyle’s sole shareholder is Fabindia, which has been a majority owner of East since 2012, while its directors are former chief executive Suzi Spink, product director Penny Oliver, Fabindia board member Sunil Chainani and Fabindia managing director William Bissell.
More than 550 employees were transferred across to the new company, but 156 were made redundant as a result of the closure of 19 stores and five concessions.
Those made redundant are owed an estimated £85,240 in preferential claims – in relation to unpaid wages, capped at £800 per person, holiday entitlement and pension deductions – and £193,480 in unsecured, non-preferential claims which includes any further unpaid wages owed.
The £85,240 will be paid in full, the administrators said, while the rest is subject to the 10p dividend.
The preferential and non-preferential unsecured creditors will be paid “in due course”. East’s secured creditor, HSBC, has already been paid.
- Former White Stuff chief executive Sally Bailey was appointed board advisor at East in December.