here is what will follow for the retailer and his staff Business

Who are the creditors and will they get their money?

Creditors tend to include owners, suppliers, and banks. They will be broken down into secured, preferential (employees and retirees) and unsecured creditors.

But the real measure to whom is due this will not appear for several weeks. Directors should publish a list of all creditors and possibly how much each can expect to recover.

If Arcadia had gone bankrupt on December 1, HMRC would have been a preferential creditor – meaning they would be entitled to any money greater than unsecured, following a rule change by the government.

But due to the administration’s announcement at 8 p.m. on November 30, the tax authorities remain on the list of unsecured creditors.

Is Sir Philip Green a creditor?

It is highly likely that the former owner of Arcadia and his family were secured creditors – Sir Philip was a secured creditor of BHS when it was sold for £ 1 before its collapse and was entitled to be paid off first when he went bankrupt.

But it can be politically tricky for him to claim the money when Arcadia’s pension deficit could be in the order of £ 350million and 13,000 workers won’t know if they have a job. next year.

What happens to staff and retirees?

The staff will have to continue working while the stores remain open and will be paid.

But as directors become more familiar with the business, job losses are inevitable. The administrators will be responsible for informing the staff and hope that any buyer will agree to keep them.

Most retirees will be protected by the Government Pension Protection Fund (PPF), which is financed in part by withdrawals from other pension funds.

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This notice was published: 2020-12-01 10:11:59