Carpetright’s fall into administration was sealed by a winding up petition from HMRC over unpaid VAT and PAYE contributions.
Faced with owner Meditor’s unwillingness to invest further in the flooring and bed chain, PwC was hired to look at selling the chain before it was appointed administrator and the retailer broken up.
PwC’s Joint Administrators’ proposals – its first report to creditors – estimates that HMRC is owed about £9m. As a preferential creditor it is expected to see this repaid in full.
Unsecured creditors – landlords, suppliers and customers – are expected by PwC to receive less than 1p in the pound.
Microsoft seems to be the largest unsecured creditor, owed £3.1m, while flooring suppliers are owed millions. Waste company Biffa is owned £852,000; DHL £540,000 and Royal Mail £372,000.
The document also quantifies the scale of the charge parent Nestware placed on Carpetright when the chain’s intellectual property was transferred to it at £12m, according to The Times. It is unclear if this forms part of the £120m Nestware says it is owed: Nestware struck a deal with Tapi for IP.
PwC suggests that Nestware’s claim is unlikely to be met.
IMAGE: HMedits2020
