COMPANIES owed money as a result of the demise of Wigan retailer JJB will not be paid, a new report has confirmed.
The Martland Mill based retail chain went into administration owing creditors a massive £212m.
While the fate of Wigan’s last remaining JJB store on Robin Park remains uncertain as discussions between KPMG and interested companies remain ongoing.
A spokesperson for the administrators confirmed to the Evening Post this week that they continue to receive interest in the remainder of the JJB portfolio.
According to their report, stock suppliers such as Adidas, Nike and Umbro will be left out of pocket to the amount of £30m.
Additional unsecured creditors such as landlords are owed £9m, other businesses £28m while £117m has been written off as intercompany debt.
The report said: “Unfortunately, there will be no distribution to unsecured creditors in the company other than under the prescribed part rules.
“The joint administrators anticipate that the second priority secured creditors will ultimately suffer a material shortfall.”
The report also reveals that KMPG has now run up a £1.1m bill in fees and expenses since they were appointed.
There was better news however for secured creditors Lloyd’s Bank who received 18 of the £23m it was owed.
Business insiders have claimed that a bidding war between discount retailers 99p Stores, Home Bargains and B&M has been taking place over JJB’s remaining stores.
And B&M last month agreed lease agreements for three stores including one in Prescot, Merseyside.
Sports Direct, controlled by Newcastle United owner Mike Ashley, agreed a £24m deal to take on 20 JJB stores in a pre-pack administration deal in October.
But the deal has since come under investigation from the Office of Fair Trading under competition rules.
JJB’s Martland Mill HQ was safeguarded as part of the Sports Direct agreement with 258 jobs preserved.
However, 28 staff from the Robin Park store were made redundant with the future of the store remaining uncertain.
Former employees who have suffered hardship as a result of the collapse of JJB are urged to contact charity the Fashion and Textile Children’s Trust - www.ftct.org.uk.