McEwens of Perth owed RBS millions when it closed its doors - KPMG

The now defunct historic Perth department store McEwens owed a total of £3.44 million to Royal Bank of Scotland when it went under last year, according to its administrators KPMG.

The cash was owed through a combination of a loan, overdrafts and a cross guarantee in respect of a related company.

RBS was the department store chain’s single secured creditor at the time of the administration appointment.

During the six months between September 24 last year and March 23 covered by the latest progress report produced by Gerard Friar and Blair Nimmo of KPMG, RBS received a £350,000 distribution from the administrators under the terms of its floating charge.

The bank’s ultimate return will depend on the proceeds realised from any sale of McEwens’ only remaining asset, its iconic headquarters at St John Street in Perth and a secondary unit at South Street.

Property consultants CBRE are marketing the properties for sale and the report states they are now in discussions with “a number” of interested parties.

The report also reveals that dozens of the retailer’s former workers are in line for a payout after the joint administrators’ report outlined preferential claims totalling £92,000 from former staff members relating to back pay and accrued holiday pay, which are now likely to be paid in full.

McEwens, a landmark store in Perth since 1868, collapsed in March last year and eventually shut its doors for the final time two months later following a closing down sale.

The firm was one of the city’s largest retail employers, with a workforce of more than 100 staff when it went under.