KPMG administrators say JJB creditors will receive next to nothing
Collapsed retailer owes £212m to unsecured creditors, with just £600,000 to share out. Shareholders also to receive no repayment
MANY CREDITORS of collapsed sports-wear retailer JJB Sports will receive virtually nothing, according to KPMG administrators.
JJB sports entered into a pre-pack administration, with Brian Green, David Costley-Wood and Richard Fleming, partners at KPMG, appointed joint administrators of JJB Sports Group, SSL Retail and Blane Leisure.
Unsecured creditor claims, such as those from suppliers, amount to £212.2m. This includes £29.9m to stock suppliers and £9.1m to landlords.
There will be a maximum distribution of £600,000 to unsecured creditors, with the administrators claiming there would be insufficient funds for a distribution to the shareholders of the formerly listed business.
In an administrators statement of proposals filed this week, it is also revealed that some secured creditors will suffer a “material shortfall”.
It is suggested that JJB’s lender Lloyds Bank is likely to be repaid in full.
The administrators’ fees so far have amounted to £1.6m, representing 4,766 hours at an average hourly rate of £342.
The administrators will liquidate the business, with Green, Costley-Wood and Fleming to be appointed joint liquidators, unless the proposals are challenged.