Edinburgh Woollen Mill (EWM) collapsed after owing more than £50 million to its unsecured creditors that included suppliers, landlords and HMRC and a defined benefit pension scheme.
Also Read: EWM finally falls into administration
The pension scheme, notably, represents the largest portion as EWM owes it £17 million. Besides, suppliers were owed £11.4 million and HMRC £10.5 million.
The landlords were owed around £9.3 million. The retailer also owed its parent firm The Edinburgh Woollen Mill Group a good amount of £140 million.
Reportedly, an administrator’s proposal was filed by FRP advisory for The Edinburgh Woollen Mill Limited on 29 December 2020. However, it was released under the Company House filing for Duvetco, which trades as Ponden Home (EWM’s sister concern).
It is worth noting that The Edinburgh Woollen Mill Group is listed as a secured creditor and therefore will first get payouts in case any money is realised as a part of the administration process.
Meanwhile, the FRP advisory has said that The Edinburgh Woollen Mill Group may not receive the entire £140 million.
It also said that the unsecured creditors too cannot expect to receive any amount beyond their share in £600,000 ‘prescribed part’ required by law.
We will keep you posted about all latest developments in this regard.