Some creditors will miss out as KPMG’s McEwens of Perth wind up continues
A progress report filed at Companies House by the joint administrators of defunct Perth retail institution McEwens has revealed that it is not anticipated that all claims against the business will be paid in full.
The documents filed by Tony Friar and Blair Nimmo of KPMG also show that the business’s landmark city centre store was sold-off for £675,000 to Panther (VAT) Properties Limited, a subsidiary retail, industrial and office properties group of AIM-quoted Panther Securities PLC.
The firm, which is chaired by veteran businessman Andrew Perloff, is based in Potters Bar, Hertfordshire.
Mr Perloff is also chairman of sister business Beales, the retailer that has taken over the McEwens building and began trading at the site earlier this month.
However, Nimmo and Friar say that the income from the completion of the building sale in September – and more than £35,000 of rent paid in the period between March 24 and September 23 by sub-let tenant Brook Taverner, will likely not be enough to provided restitution for all unsecured creditors, such as customers of McEwens with outstanding gift or promotional vouchers.
But, Mr Friar said sufficient funds had been recovered from the property sale to allow a distribution to the secured creditor Royal Bank of Scotland, which was owed £3.44 million when McEwens closed its doors in March last year.
This was made up of a £1.77 million loan, £661,440 overdraft facility and a £1 million cross guarantee in respect of a related company.
The administrators said they had already made payments totalling £700,000 to the bank and expected to make a further dividend, although exactly how much it will be has yet to be quantified.
The administrators also reiterated their expectation that McEwens’ preferential creditors – former staff members with outstanding pay claims totalling £116,000 – will be paid what they are owed in full.
The administration period is due to end on March 23 2018, and KPMG said it currently expected all matters to be finalised by that date.