Creditors of insolvent fashion retailer Jane Norman could miss out on a potential £10m, according to an administrators report.
Jane Norman collapsed into administration for the second time in three years in June this year, after entering insolvency in 2011 before being bought out of administration by Edinburgh Woollen Mill.
The business has continued to trade in its UK stores, online and in overseas department stores.
Alistair Wardell, David Riley and Les Ross of Grant Thornton were appointed as joint administrators to the company on 24 June.
According to the report, EWM (2011) Ltd, a subsidiary of parent company Edinburgh Woollen Mill, is the only secured creditor of Jane Norman and was owed a total of £10m at the time of administrator’s appointment.
The administrators estimate EWM (2011) Ltd will receive £7,072,000 from the administration.
Unsecured creditors are owed a total of £7.8m and face a more uncertain wait for any returns, with administrators suggesting paying 7.7p in every £1 – although this may be disrupted by any “further creditor claims”.
HMRC is the largest single unsecured creditor of the company and is owed £1,366,362.
A statement issued by the company upon entering administration said: “Like many retailers, we have seen extremely challenging conditions on the high street for several years in what is a very competitive sector in young fashion.
“While we have made every effort for a number of years to makes those stores work, that part of the