The taxman gets every penny. The designers get 15p in the pound
The queue is the story: in the Harvey Nichols administration, preferential creditors such as HMRC are expected to be repaid in full, while the brands that stocked its floors, Victoria Beckham (£353,349), Jimmy Choo (£174,201), Canada Goose (£565,267), among £270.5 million of unsecured claims, are estimated to recover under 15p in the pound. Insolvency law ranks creditors, and fashion queues at the back.
The weekly
NewsletterWeeklyOne email a week. Every post from the week, and what didn't fit on a slide.Free. Never shared. Unsubscribe any time.
The post, as it ran
01IN THE HARVEY NICHOLS COLLAPSE, THE TAXMAN GETS EVERY PENNY.
VICTORIA BECKHAM GETS ABOUT 15P IN THE POUND.
02THAT IS THE QUEUE, STRAIGHT FROM THE ADMINISTRATORS' FILINGS:
HMRC REPAID IN FULL AS A PREFERENTIAL CREDITOR, WHILE THE BRANDS
SIT IN £270.5 MILLION OF UNSECURED CLAIMS AT THE BACK.
03THE BACK OF THE QUEUE IS WELL DRESSED. VICTORIA BECKHAM,
£353,349. CANADA GOOSE, £565,267. JIMMY CHOO, £174,201. THE
FLOORS THEY STOCKED ARE TRADING; THEIR INVOICES ARE NOT.
04NOBODY BROKE A RULE. INSOLVENCY LAW RANKS CREDITORS, THE
PRE-PACK MOVED THE ASSETS TO FRASERS, AND THE DEBTS STAYED WITH
THE SHELL. THE SYSTEM WORKED EXACTLY AS DESIGNED, WHICH IS THE
UNSETTLING PART.
05THE LESSON THE INDUSTRY ACTUALLY LEARNS: WHOLESALE INTO A
WOBBLING RETAILER IS AN UNSECURED LOAN IN A NICER JACKET. WATCH
CREDIT INSURANCE AND CONCESSION TERMS TIGHTEN FROM HERE.