Creditors of specialist yarn spinner Westwood Yarns could see the majority of their outstanding debt repaid, according to a new report by KPMG.

Paul Flint and David Costley-Wood were appointed joint administrators of the circa £11m supplier to the carpet trade on 23rd December after its trade credit insurance had been pulled.

The company, whose major customer was its former owner Victoria Carpets, is seeing its assets being sold on a break-up basis after KPMG failed to find a buyer.

Its 160,000sqft Holmfirth freehold property could raise in excess of £1m with other assets, including plant and machinery, its debtor book and stock, near-matching that figure.

That would leave an £88,298 deficit to creditors according to statutory filings at Companies House.

Lloyds Commercial Finance is owed £350,000 plus interest and charges, and will be paid in full, as will accrued holiday and pension contributions owed to staff totalling £102,000. All wages had been paid up to date.

Unsecured creditors are owed £1.9m and will share the remainder of the funds raised from the sale of assets. Suppliers to the yarn spinner are owed most, with Curtis Wool Direct, IFG Drake, Huddersfield Dyeing Company, Wilde Wools and Segard Masurel (NZ) all owed six-figure sums.

For more, see this Friday’s Debt Report.

RelatedAdministrators lay off 94 people at Westwood Yarns