Details of Courtaulds collapse emerge

The two Courtaulds companies that collapsed in May went into administration owing £7.2m to unsecured creditors after making over £10m worth of losses in the last three years.

CUK Clothing and Courtaulds Brands, both based in Belper, brought in administrators after the funding from the rest of the Courtaulds group which had kept it trading was withdrawn.

Dilip Dattani and Patrick Ellward of RSM Restructuring Advisory were appointed joint administrators of the CUK Clothing and Courtaulds Brands, which distributed lingerie and hosiery for the likes of Pretty Polly.

The companies manufactured and supply branded and private label clothing to retailers in the United Kingdom and internationally. Its products include hosiery, socks, bras, underwear, nightwear, formal and casual wear, jackets and coats. The companies employed around 380 staff in Derbyshire and London.

A statement from the administrators said: “Based on the available financial information, it was highly unlikely that the companies’ debts could be restructured or their losses stemmed.”

Back in May, Dilip Dattani, RSM partner and one of the joint administrators said: “The administration of BHS has added to the challenge of operating within a fiercely competitive market for seasonal products.”

To date administrators have realised just £322,270 for preferential creditors.