Poundland’s placement of 99p Stores into administration has left unsecured creditors £8.9m out of pocket, according to the newly published administrators’ report.
The Steinhoff Group-owned discount retail chain placed 99p Stores into administration, in a process affecting 60 previously closed stores, in March - a little over two years after buying the portfolio of 250 stores.
Global consulting firm Alix Partners was appointed as administrator over 99p Stores on 22 March after Poundland had converted the majority of 99p Stores to the Poundland fascia.
The Alix report revealed 99p Stores owed unsecured creditors £8.9m and Poundland itself £2m as losses escalated following the Poundland takeover.
99p Stores made a loss of £12.1m in the year to 31 January 2015, which the report reveals grew to a loss of £18.1m in the 60 weeks to 26 March with net liabilities of £27.1m.
Poundland aside, the largest single creditor is Northampton Borough Council, which is owed over £900k, understood to be related to a closed 99p Stores DC.
The report states there is little prospect of creditors recovering any of the cash they are owed.
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