Body Shop creditors could recoup nearly £5million more back from beauty chain
An updated statement by administrator FRP reports unsecured creditors could get back 17p in the pound rather than 15p.
The Body Shop’s unsecured creditors could recoup nearly £5million more back from the embattled beauty chain than initially expected, according to administrator FRP.
Based on an analysis of the statement of affairs FRP prepared for its creditors, which outlined its updated financial position, unsecured creditors could get back 17p in the pound.
Initially, FRP thought they would get 15p for every pound they were owed by the fallen high street giant.
FRP estimates the beauty business has £52.7million of realisable assets, which have a book value of £484.6million to repay creditors.
That compares to its original forecast of £47.6million back in April.
HMRC, along with other preferred creditors are owed £6.8million and have first claim on any money recovered by FRP.
That would leave £45.9million for unsecured creditors, who are owed £269.9million. The Body Shop has 652 creditors.
The precise returns creditors will ultimately receive hinges on whether or not FRP can find a buyer for the business.
FRP abandoned its plan to agree on a Company Voluntary Arrangement, an insolvency process to help companies slash debts after creditors objected. Instead, FRP is trying to sell the Body Shop and the deadline to lodge bids expired last week.
