Debenhams’ unsecured creditors to lose out on £1.3bn
Debenhams’ debt included £323.6m in respect of its revolving credit facility as well as £202.5m in unsecured loans
Debenhams’ unsecured creditors, including clothing suppliers, landlords and lenders, are set to lose out on the £1.3bn they were owed before the business collapsed in 2020.
According to The Times, a new report from the department store’s liquidator, AlixPartners, revealed that no funds were available for distribution to the group’s unsecured creditors.
These creditors include suppliers and landlords who do not hold any security or collateral against the debt owed to them.
Debenhams’ debt includes £323.6m in respect of its revolving credit facility as well as £202.5m in unsecured loans.
The department store chain fell into administration at the end of 2020 and was set to be wound down before a £55m takeover deal was agreed with Boohoo in 2021.
However, the transaction was for its intellectual property assets only and did not include Debenhams’ retail stores, stock or any of its financial services.
AlixPartners declined to comment.