KPMG administrators say JJB creditors will receive next to nothing

by Rachael Singh

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30 Nov 2012

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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.

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