STRUGGLING SPORTSWEAR retailer JJB Sports is reported to be under investigation by HMRC over accounting errors relating to VAT mistakes.
The taxman has been looking into allegations the company wrongly charged VAT on children’s clothing which is usually zero-rated, dating back as far as 2006, The Telegraph reports.
At the end of August, the struggling company said that it was in discussions with its strategic partners to discuss a sales process with Sports Direct, the most likely buyer after rival JD Sports said it was uninterested.
On 28 August, net bank debt was £16.5m, with JJB also owing £18.75m of convertible loan notes. It had drawn down £1.1m under the trade loan facility.
In the summer of last year, KPMG arranged an insolvency deal known as a Company Voluntary Arrangement (CVA) which reduces debt owed and contracts repayment terms over an agreed period of time. In order for a CVA to be approved, 75% of creditors, by value, must approve the deal.
Manufacturer DMG Steelworkers has been sold out of administration in a pre-pack deal by insolvency and restructuring firm CVR Global
By threatening creditor returns, the government could undermine the UK’s World Bank insolvency ranking and cost creditors £8m a year, trade body R3 warms
Lee De’ath and Richard Toone, partners at CVR Global, were appointed joint-administrators of Lexden Centre (Oxford) Limited, trading as Colchester English Study Centre (CESC), on 29 June 2016
The current business rates system is over-complex and reform is needed, but reforms should focus first of all on simplifying the appeals process, particularly for businesses which are subject to business rates exemption