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USC suppliers owed £14m

Brands stocked by young fashion retailer USC are owed a total of £14.3m following the business’ pre-pack administration.

A creditors report issued by administrators Duff & Phelps states money owed to non-preferential unsecured creditors totalled £15.2m at the time of going into administration. Of these creditors, trade and expense creditors are owed £14.3m; HMRC is owed £576,499 and gift vouchers issued by the firm total £286,333.

Brands hit hardest include Diesel, which is owed £1.3m and G-Star which is owed £1m.

Converse is owed £656,817, Warnaco - parent company for Calvin Klein - is £562,881 out of pocket while Bestseller is owed £417,312. Tommy Hilfiger is owed £104,061.

It is understood that most of the money owed to suppliers is held in stock and USC is dealing with brands on a case by case basis to come to an agreement. All of the 90 USC stores are still trading.

USC appointed Duff & Phelps and Gallagher Partnership as joint administrators on January 13 before selling the company to another Sports Direct-owned firm Republic.

More than 200 workers at USC’s warehouse in Dundonald, South Ayrshire, were made redundant when the business went into administration last month. As reported by Drapers, workers are to take their cases to an employment tribunal.

Meanwhile Sports Direct founder Mike Ashley will be pulled into a parliamentary investigation over his business practices and the treatment of the workers.

@jillgeoghegan

Readers' comments (6)

  • In todays climate with business one would get credit insurance to safeguard themselves or are these brands chasing turnover to keep afloat?

    off the independent sector, probably 25% qualify for credit insurance and the rest are at brand owners risk.........

    sorry state of affairs.

    time to quit??

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  • Wow what a figure to be owed, How much did these companies get insurance cover for and how about the small suppliers. It reads like a book or should it be a fairy tale, let's hope there is a happy ending!!
    Flannels, Cruise ,Van are you at risk ??

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  • 15m? thats how much Ashley made out of his little deal with Tescos!
    Pay up Mike! you cant play with peoples lives.

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  • Can somebody please explain how they can trade on in USC Who will or would supply them or am I missing something?

    Thank you.

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  • These brands must be desperate for business to continue to trade with this lot,

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  • Trade Insurance is pulled immediately by the banks and insurance companies as soon as a even a small flag is raised. As a supplier you are damned if you do ship and damned if you don't . Even more difficult when goods are seized under a lien so as a supplier you end up having to pay to get your own goods back that haven't been paid for.
    British trade law needs to change to plug this loophole.

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