
TM Lewin has seen its debts soar by almost £10m, following its collapse in 2022.
A Companies House document revealed unsecured creditor claims increased from £24.6m to £33.8m from June 30 until the end of December.
The debts included those owed by the company that weren’t backed by assets and had no priority over other creditors, making them less likely to be paid back.
The menswear retailer’s administrator, Evelyn Partners, said the main reason behind the debt increase was a creditor providing proof of claims for more than £10m, compared to an estimated liability of over £5m.
Additionally, HM Revenue and Customs had submitted an unsecured claim for £1.9m.
The documents revealed £841,600 had been paid to preferential creditors, while preferential claims of £1m were predicted in the statement of affairs, regarding outstanding wages, pension arrears and holiday pay.
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The administrators explained they had grown their fee estimate from £386,000 to £864,000, since the restructuring process needed to “stay open significantly longer than originally envisioned”.
The administrators added that the “company’s tax position was muddled, and trading information needed to be thoroughly reviewed to help mitigate potential direct and indirect tax liabilities against it”.
The fashion retailer collapsed into administration for the second time in two years in 2022, appointing Interpath Advisory to handle the process.
The company went on to confirm its rescue deal and online relaunch in April 2022, as it was sold to TM Lewin Shirtmaker Limited, a company owned by its main lender Petra Group.
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