Running wear firm sold in pre-pack owed £1.3m to creditors

A Leicestershire firm which sold running undergarments and bought in a pre-pack deal last December owed over £1.3m to creditors when administrators were brought in.

According to documents seen by TheBusinessDesk.com, Chambers Ling, which traded as Runderwear was sold for just £80,000 to Masters of Mayfair after Tom Straw and Gareth Harris of RSM Restructuring Advisory were appointed to look after the day-to-day running of the company – which employed just two people by the time it was offloaded.

Masters of Mayfair is a British luxury lifestyle brand that produces sleeping masks, socks, pillows and room and pillow sprays.

Documents released by the administrators showed that Chambers Ling owed £1.31m to 32 creditors when it was sold, including over £80,000 to HMRC, over £24,000 to Amazon and £25,500 to American Express.

Unsecured creditor are unlikely to see any of the cash owed to them, say RSM.

Chambers Ling, which has its head office at Burrough on the Hill, Melton Mowbray, operated online and sold its products via ecommerce channels such as Google, Facebook, Amazon and its own website.

The company faced financial difficulties due to cost inflation amongst a challenging post-Covid e-commerce environment, said the administrators.