Failed shirtmaker and retailer TM Lewin has seen its debt load rise since its collapse. Its debts are understood to have grown by almost £10 million and it now owes unsecured creditors over £30 million.
TM Lewin
The business, which isn’t the firm now operating as TM Lewin (the brand was bought post-administration by the parent company of its main lender) had 150 stores before the pandemic but struggled with the switch to working from home and the increasing casualisation of office-wear.
The Times reported that a document filed with Companies House shows unsecured creditor claims rose from £24.6 million to £33.8 million between June 30 and the end of December last year.
These are debts owed by a company that are unsecured against any asset and do not hold priority over other creditors, meaning they are unlikely to be repaid.
Administrator Evelyn Partners said the main reason for the rise was a creditor providing proof of claims for over £10 million, compared with an estimated liability of more than £5 million. HM Revenue & Customs had also submitted an unsecured claim for £1.9 million.
TM Lewin called in administrators in 2022 for the second time in less than two years. The business, which operated 150 stores pre-pandemic, had been a solely online business since first calling in administrators in June 2020.
The company was then owned by Torque Brands, part of the US-based private equity firm Stonebridge, after it bought it out of an earlier administration in 2020.
The latest documents show that £841,600 has been paid to preferential creditors. Preferential claims of £1 million were estimated in the statement of affairs, in respect of outstanding wages, holiday pay and pension arrears.
The administrators said they had increased their fee estimate from £386,000 to £864,000 as the restructuring process has “had to stay open significantly longer than originally envisioned”.
“Further time has had to be spent to ensure adequate case progression, including regular updates between the officeholders and their staff to consult on the best approach to overcome unforeseen hurdles surrounding employee claims and tax,” they said.
