Former employees of collapsed value chain Internacionale are still waiting to learn if they will receive what they are owed in unpaid wages and pension contributions, as its administrators are engaged in a legal battle with an unknown third party.
Joint administrators Lyn Vardy, Toby Underwood and Bruce Cartwright of PwC cannot complete the administration until the legal proceedings have concluded.
Internacionale’s preferential creditors – namely its staff – are owed a combined £82,305.
In a report filed at Companies House on Saturday and covering the period of January 1 to June 30, 2015, the administrators said: “Any dividend to preferential creditors will be dependent on the final trading position, together with other asset realisations.
“Unfortunately due to the outstanding litigation issue, we are unable to confirm what funds will be available for distribution. It remains, on a worst case basis, unlikely that funds will become available to pay a distribution to the preferential creditors.”
PwC said it had attempted to reach a settlement with the third party out of court, but received “no substantive response” and therefore issued court proceedings. Details have been withheld for confidentiality reasons.
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.