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Planet Organic owed creditors more than £12.5m when it fell into administration last month, The Grocer has reported.
According to The Grocer, a report from administrator Interpath Advisory revealed that more than 400 unsecured creditors will not be repaid the majority of the £8.4m owed as a result of the administration, though a small dividend is expected to be paid back.
The majority are owed less than £20k, though London-based speciality wholesaler Wholegood is reportedly owed £428k. As Nature Intended is also said to be owed £1.5m, while Inverleith is owed £118k and Howard Tenens Logistics is owed £117k.
Elsewhere, secured creditors Triodos and Lloyds are owed £4.1m, with Lloyds expected to be fully repaid and Triodos to suffer a shortfall. More than 40 shareholders are listed in the report looking at loss of shares worth a combined £5.8m, with majority owner Inverleith making up £3m of the total.
Planet Organic was also found to owe staff £27k for wages, holiday pay and pension benefits, which is estimated to be paid in full, while HMRC is expected to receive all the outstanding £710k.
In addition, the report also revealed that Bioren Limited, an investment vehicle whose shareholders include Planet Organic founders Renée and Brian Elliott, paid £810k to close the rescue deal, including £330k for goodwill and IP, £330k for stock and £150k for equipment and fixtures and fittings at the store base.
Last month, Bioren Limited fended off competition from Sainsbury’s to acquire the majority parts of the business and its assets after appointing Interpath Advisory as administrator.
The rescue deal meant that 10 Planet Organic stores have continued to trade in locations throughout London, safeguarding 194 jobs in-store and 71 jobs in the retailer’s head office. However, four stores were not included in the transaction and closed with immediate effect, totalling 64 redundancies.
According to the directors of Bioren Limited, who plan to “return to Planet Organic’s vision and values”, it will reinvigorate the business by “celebrating its mission to promote health in the community and to renew training and culture, with the aim of inspiring people to eat well and create personal health and vitality, while supporting the earth’s health and biodiversity”.
Planet Organic was founded in 1995 and has grown over the past 28 years to become the UK’s largest chain of Soil Association-certified organic shops, operating from 14 sites across London and the South East.
Interpath Advisory has been contacted for more details.
