Creditors of West-based Tony Pryce Sports, the sports equipment retailer, have received all their money back just 18 months after the company went into administration.
The business, which had sales of £20m and traded from 34 locations across the region, was sold last year to Mantra Brands by joint administrators Graham Randall, pictured, and Mark Roach from accountants BDO’s Bristol office.
Initially the administrators thought they would only be able to secure around 60p in the pound for the unsecured creditors, who collectively were owed around £4m.
The BDO team worked on three key areas to maximise the dividend. Firstly, they energetically marketed the business, resulting in two very keen parties and a good price being negotiated for the business. As part of the deal BDO persuaded the purchaser to take on certain liabilities, including credit notes, gift vouchers and loyalty points in circulation. The sale was also on the basis that the purchaser took on all stores and retained all staff. These efforts resulted in liabilities being reduced and employee claims eliminated.
Secondly, BDO challenged the local authority rates paid by the company at head office and a number of stores, resulting in many refunds.
Finally BDO carefully considered all creditor claims, particularly those from landlords, claiming for unpaid rent, service charges or dilapidations. The administrators successfully challenged a number of these claims so reducing liabilities and increasing the dividend for creditors.
Graham Randall said: “The team worked very hard to maximise the return for all trade creditors, exceeding all expectations. During the current tough trading conditions, businesses can ill afford to lose their hard-earned money through customers becoming insolvent. This is an excellent example of how losses can be recovered.
“Our duty is to maximise the fullest possible return for creditors. It is unusual in an insolvency to make a payment in full to unsecured creditors and this is the second occasion we have achieved it in recent times.”
Tony Pryce Sports ran 19 shops under the Tony Pryce Sports, Wipeout and Edge brands and operated a further 15 Animal Clothing stores under licence in areas such as Cribbs Causeway and SouthGate, Bath.
