PwC, the administrator appointed for Carpetright following the retailer’s collapse last year, has agreed a £4m pay package with creditors, as revealed in its latest progress report, filed in late August.
The fee covers the main work of managing the administration, including the sale of Carpetright’s business and most of its assets, the closure of more than 250 locations and the redundancies of some 1,500 employees.
Secured and preferential creditors of CPR Realisations (the new trading name of Carpetright since administration began) agreed to fix PwC’s remuneration at the amount.
According to PwC’s report, the administrator anticipates it will pay first ranking preferential creditors (the company’s employees) in full, while it aims to pay the secondary preferential creditor – HMRC – up to 90% of its claim. Neither secured nor unsecured creditors are expected to receive any returns, owing to “the lack of fixed charge assets and the level of preferential debts which rank ahead of the floating charge,” says PwC.
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