Smith & Williamson’s South Coast restructuring and recovery team has confirmed that £394,517, equating to a dividend of 19p/£, has been paid out to the unsecured creditors of High Noon Stores Limited (“the Company”).
The Company ran a chain of four retail stores and six petrol stations in Wales and the West of England. Due to cash flow pressures in late 2016, the Company had ceased trading and Greg Palfrey and Stephen Adshead of Smith & Williamson were appointed joint administrators in January 2017.
There have been significant complications during the administration, including High Court action against the administrators with regards to property rights issues, which were subsequently decided in favor of the Smith & Williamson team. Despite this, all the properties, except for one petrol station where the lease had expired, and a convenience store that attracted no offers, were sold by the administrators. With competitive pressure high, four of the petrol stations were sold via a pre-pack sale for a substantial price, significantly above agents’ expectations.
“This was a great result for the creditors,” said Greg Palfrey, National Head of Restructuring and Recovery Services at Smith & Williamson and joint administrator of High Noon Stores Limited.
The dividend payout to unsecured creditors follows on from secured and preferential creditors being paid the full amounts owed of £785,000 and£40,000 respectively. Original expectations had been that the recoveries might not be sufficient to even repay the secured creditors in full.
“Overall, the outcome of the case has been excellent, and an equitable result has been achieved for all parties,” added Greg.
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of publication.
The tax treatment depends on the individual circumstances of each client and may be subject to change in future.
Notes to editors
Smith & Williamson is a leading financial and professional services firm providing a comprehensive range of investment management, tax, financial advisory and accountancy services to private clients and their business interests. The firm’s c1,800 people operate from a network of 12 offices: London, Belfast, Birmingham, Bristol, Cheltenham, Dublin (City and Sandyford), Glasgow, Guildford, Jersey, Salisbury and Southampton. Smith & Williamson is part of The Tilney Smith & Williamson Group.
Smith & Williamson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. Smith & Williamson LLP is a member of Nexia International, a leading, global network of independent accounting and consulting firms. Please see https://nexia.com/member-firm-disclaimer/ for further details.
Greg Palfrey and Stephen Adshead, both of Smith & Williamson LLP, were appointed joint administrators of High Noon Stores Limited (“the Company”) on 27th January 2017. They act as agents of the Company and without personal liability. Greg Palfrey and Stephen Adshead are licensed as insolvency practitioners in the UK by the Institute of Chartered Accountants in England and Wales.