Victoria Plum Limited - Case Update

Samuel Woodward and Timothy Vance of EY have provided an update on their administration of Victoria Plum and the reasons for the company’s collapse.

Not surprisingly, the online bathroom retailer traded successfully throughout COVID-19 lockdowns. Its owner explored a sale in late 2021, but the sale process did not result in any suitable offers.

In 2022, the company experienced challenging trading conditions due to reducing market demand and inflationary cost pressures, especially freight costs. A second sale process seeking a share sale was commenced in January 2023. This process concluded in early September with no offers.

Due to the company’s worsening liquidity position and lack of solvent offers, the company and its senior creditor Secure Trust Bank engaged EY to undertake an accelerated sale process for the company’s business and assets. Six offers were received. The joint administrators ultimately completed a sale to AHK Designs for consideration of £7.8 million. All of the approximately 300 employees transferred to the new owner.

The joint administrators anticipate that Secure Trust Bank, owed £4.6 million, will be repaid in full, while secondary secured creditor Endless is expected to suffer a shortfall. HMRC is likewise not expected to be paid in full on its estimated secondary preferential creditor claims of £3.1 million.

Their joint administrators have been assisted by Squire Patton Boggs. Their proposals can be found HERE.