Kwik Save has suffered a dramatic increase in the number of County Court judgments issued against it by creditors in the last few months, Accountancy Age can reveal.
The company, which announced it will shut a third of its stores to try and save the business, saw 36 CCJs entered against the company since 23 January, to the value of £1.2m.
But the retailer had no CCJs issued against it in the previous 12 months.
Since chief executive Paul Niklas announced a £50m injection into Kwik Save in March, the company continued to have CCJs issued against it. Following Niklas' announcement, 14 CCJs were issued, to the value of £494,000.
The figures underline the financial difficulties faced by the retailer in the past few months.
One CCJ, issued at Redditch County Court, was to the value of £134,304.
In comparison Tesco had 11 CCJs issued against it during the last 18 months, to the value of £63,000, figures from credit rating agency Graydon revealed.
'If Kwik Save has had a £50m rescue package recently I can't see it,' said Graydon MD Martin Williams.
Kwik Save would not comment on the figures.
Further reading:
Ken Bates: Leeds could be doomed without CVA
Comments