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MK One owes creditors more than £50m

MK One, the value chain that went into administration in May, owes creditors and suppliers more than £50 million.

But Deloitte & Touche, MK One's administrators, have warned that unsecured creditors will receive a maximum of 1p for every £1 they are owed, according to The Daily Telegraph.

A report by Deloitte revealed that MK One made a pre-tax loss of £20m in the year to January, despite an increase in sales from £118m the previous year to £123m.

The report said: "A further £10m was injected into the company over the period from January to April to enable the company to pay for suppliers, essential operating expenses and salaries. However, the company's performance continued to deteriorate and the funding injections were almost immediately exhausted."

According to the report, 100 stores have been sold to Jet Star for £7.1m. Jet Star is connected to former MK One director and shareholder Mark Brafman.

Readers' comments (3)

  • OMG! 1p for every £1. how many suppliers have survived this collapse then? I cant quite believe it. Were people supplying them uninsured and what were the biggest amounts owed. Who would have thoughit with baugur.

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  • how on earth can they have allowed themselves to get £50 million in debt??? We are all thinking things are tough, but this takes it to a new level. Thank god I did not supply them 1pence for every £ owed????? Shameless.

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  • BUYERS BEWARE NO REFUNDS GIVEN ONLY EXCHANGES AND NOTHING FOR SALE ITEMS.

    APPARENTLY A RED MARKER IS A SALE ITEM AND A BLACK MARKER A OFFER OR PROMOTION ITEM.

    YOUR STATUTORY RIGHTS ARE NOT AFFECTED

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