Internaçionale’s administrators have warned they may not recoup enough funds to pay back the wages, holiday pay and pension contributions owed to staff when the business went into administration – amounting to £100,000 in total.
In a six-month progress report filed on Companies House, administrators from PwC said they were still unable to provide a “reliable estimate” of the likely dividend to creditors.
The report continued: “Until we have settled all trading liabilities we are unable to confirm the funds that will be available for distribution. In the worst-case scenario, it is possible we may not have enough funds to pay a distribution to the preferential creditors.”
The preferential creditors, who are mainly employees, are believed to be owed at least £100,000. PwC said this figure was yet to be finalised as some people have still not submitted claims for unpaid holidays.
Internaçionale employed about 1,000 staff across its 89 UK stores.
The progress report covers the period from February 28 to August 27 and was filed at the end of last month, but Lyn Vardy, one of the PwC administrators along with Toby Underwood and John Cartwright, told Drapers this week “the position remains unchanged”. An update is expected in four to six weeks.
Internaçionale filed for administration in February. Its final store closed on June 8.