The administrators of a collapsed business in the Orla Kiely fashion empire have been able to pay out a dividend of 25.52p on the pound to preferential creditors.
The administrators’ ‘final account’ for Kiely Rowan plc that it is their intention to file a notice to move from administration to dissolution of the firm - four years after the administrators' appointment by the High Court in London.
The collapse of Kiely Rowan plc with debts of £7.25 million (€8.3 million) in September 2018 sent shockwaves across the retail and fashion industries as the long-established business was on an upward trajectory having reported increasing revenues and operating profits for fiscal 2017.
The business collapsed due to amounts used to fund the Orla Kiely retail expansion into the US where the opening of a new store in New York City created a drain on the cash flow, causing the requirement for additional borrowing which eventually led to the collapse of the whole group.
Today, Ms Kiely’s separate licensing business operated by Ms Kiely and husband, Dermott Rowan continues to thrive and expand.
The administrator’s final account reports that claims by preferential creditors of Kiely Rowan plc relating to unpaid holiday pay, wage arrears and pension contributions were estimated at £97,413 in the director’s Estimated Statement of Affairs.
Joint Administrator, Christopher Newell states: “A dividend of 25.52p in the £ was paid to preferential creditors on September 6th 2022.”
However, unsecured creditors were estimated to have been owed £6.13 million and 88 claims were received from unsecured creditors totalling £4.79 million.
The report states that the Statement of Affairs estimated that the 'Irish Tax and Customs' were owed £100,000, trade and expense creditors £2 million and directors and related parties owed a combined £2.1 million.
Mr Newell states that "there were insufficient asset realisations to pay a dividend to unsecured creditors".
The largest secured creditor was Metro Bank plc which was owed £2.15 million.
Mr Newell states that Metro Bank plc has received £1.146 million from the sale of 59 Killyon Rd of which £427,773 was paid against the outstanding mortgage for the property and £719,195 against the personal guarantee for the company debt.
Mr Newell states that the main asset of the company was its stock which has been realised in full. Mr Newell stated that stock was sent for sale to QVC in the US and the total sale of stock totalled £250,762.
