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Greenwoods suppliers owed £3.2m

Greenwoods suppliers are owed a total of £3.2m after the Yorkshire-based menswear retailer went into administration in September, its administrators report has revealed.

The business, which is head quartered in Bradford, appointed Deloitte partners Adrian Berry and Clare Boardman as its administrators on 6 September.

Rising wage costs, unfavourable foreign exchange fluctuations and falling sales were among reasons noted for the retailer’s decline.

Its administrators predict the company will have £93,000 to pay to its approximated 200 unsecured creditors after administrative costs are deducted. 

It owes its preferential creditors, including its employees, £85,000 which joint administrators anticipate being able to pay “in full”.

Greenwoods’ secured creditor HSBC, which holds a debenture registered in 2009, confirmed there is no liability owed to them by the company.

On 20 October the business was bought out by Versatile International Trading, which resulted in the closure of 22 stores and 88 job losses.

As of September, Greenwoods employed 318 people including 292 at stores, 11 at warehouses and 15 at its head office.

The business, which was first founded as a hatters shop in 1860, suffered after the recession and entered administration in January 2009 before being purchased by Pacific Trade Investment.

 

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