The administrators of collapsed value chain Internacionale have decided not to continue with legal proceedings against an unknown third party, allowing them to move on towards finally winding up the company.
As reported by Drapers last August, joint administrators, Lyn Vardy, Toby Underwood and John Cartwright of PwC could not complete the administration until the court proceedings had concluded.
But in the latest progress report filed at Companies House, they said: “Since the date of our last report we have received further legal advice regarding this matter and the decision has been taken that it is no longer in the interests of creditors to pursue the claim further.”
PwC has not revealed any details about the legal case for confidentiality reasons.
Internacionale’s former employees are still waiting to learn if they will receive what they are owed in unpaid wages, holiday entitlement and pension contributions. The chain’s preferential creditors – namely its staff – are owed a combined £82,305.
The latest progress report, which covers the period from July 1 to December 31 2015, restated what has previously been said: that the dividend payable to preferential creditors would be dependent on the final trading position.
“It remains, on the worst-case basis, unlikely that funds will become available to pay a distribution to the preferential creditors,” it added.
PwC is still seeking a buyer for the freehold to Internacionale’s former head office premises in Glasgow, after an offer from one of the building’s current tenants fell through. They are now considering two fresh offers, as well as a revised offer from the tenant.
A number of landlords have yet to submit invoices for rent and service charges owed since Internacionale went into administration, the progress report shows.
“Until such time as the position is resolved, it will not be possible to report the final trading position,” said PwC.
Internacionale employed 967 staff across its 90 stores when it appointed administrators on February 28 2014. It was decided to continue to trade the business to maximise the payout to creditors. The final stores closed on June 8 2014.
The court has agreed to extend the administration, which was due to end on February 28, by a further 12 months.