£3 million loss for unsecured creditors of McEwens

KPMG, administrators of McEwens of Perth, the venerable independent fashion store chain with premises in Oban, Ballater and Perth, have revealed that unsecured creditors have lost up to £2.875 million following the collapse of the company.

Unsecured creditors include the holders of gift and promotional vouchers as well as companies that traded with McEwens which lodged claims totalling £1.1m. A further £1.7m is owed to the Bullough family,the company pension funds, Highland Council and HMRC for PAYE and VAT.

McEwens entered administration at the end of March with debts of £4.3 million and 110 staff facing redundancy.

Company chairman John Bullough and his wife, Lady Georgina, the daughter of the late Earl of Mansfield, have blamed a perfect storm of high rates, the downturn following 2008 and the rise of the internet and out-of-town shopping for the demise of a business which was founded in 1868.

KPMG had been brought in to assist with a possible refinancing but additional funding could not be achieved. Administrators Blair Nimmo and Gerard Friar hoped that continuing to trade on a reduced scale after administration would allow time to explore a sale of the McEwens business and assets as a going concern.

They said, “Unfortunately, it became clear that this would not be possible and we are now effecting an orderly wind-down of the company.”

Sales were about £900,000 prior to deducting trading costs, and the administrators said sufficient funds will be recovered from the sale of the freehold property for a distribution to the secured creditor, the Royal Bank of Scotland, which had a total debt of £3.44m.