What: The unsecured creditors of Debenhams will not recover the GBP 1.3 billion owed to them before the retailer’s collapse.

Why it is important: A progress report from a liquidator revealed that Debenhams, which was once one of the leading names in UK department stores, had no funds available for unsecured creditors.

The department store went into liquidation during the pandemic and was acquired by Boohoo Group shortly after it began the liquidation process.

Debenhams’ debt included GBP 323.6 million in relation to its revolving credit facility and GBP 202.5 million in unsecured loans.

Debenhams collapse left unsecured creditors with GBP 1.3 billion losses