Unsecured creditors at troubled fashion and lifestyle retailer Joy are set to collect minimal returns as a result of its pre-pack administration deal, which was struck last week.
It is understood that Joy’s unsecured creditors, which include landlords and suppliers, are likely to regain less than 10p for every pound they are owed.
The news comes as administrators Gareth Roberts and Paul Ellison of KRE Corporate Recovery are expected to issue their initial report to creditors later this week, and will outline their proposals in further detail over the next two to three weeks.
As reported exclusively by Drapers last week, the embattled fashion business was sold back to owners Louche London and the Joy Group of Companies in a pre-pack arrangement following its collapse into administration.
Management at Joy had cited rising high street rents and soaring business rates as contributors to its demise.
Joy closed 11 of 32 stores across the UK, resulting in 78 job losses. The company is now staffed by 230 employees.
The business previously went into administration nearly 10 years ago before it was bought by Louche London in 2008.
The company is the latest fashion retailer to go into administration, following Jaeger and Jones Bootmaker among the high-profile casualties this year.
The administrators had no further comment.