Creditors of bust retailer Wilko are expected to lose most of their money, its administrator has estimated.
Wilko’s unsecured creditors face the likelihood of receiving only 4p to 8p in every pound they are owed, Sky News has reported.
The figure was revealed in proposals from administrator PwC, which were circulated last night.
It is anticipated that the Pension Protection Fund will receive in full the £20m it is owed as a secured creditor. However, it is understood to be owed millions more as an unsecured creditor.
Barclays bank and specialist lender Hilco are also expected to receive in full the £2.4m and £39.9m they are each respectively owed.
Wilko plunged into administration last month after efforts to save the business failed amid torrid retail trading conditions.
Since its failure, competitors including B&M and Poundland have snapped up tranches of Wilko stores. The remaining Wilko branches have been or are being shut – the last ones will close early next month.
The collapse has led to criticism of, and questions for, the founding Wilkinson family who still owned the retailer and had received millions of pounds in dividends. There have been calls for them to return some of the cash they extracted.
No comments yet