foamLawyers working on behalf of the estate of one of Britain’s largest beds manufacturers have agreed a seven-figure settlement with foam suppliers following a damages claim.

The foam companies — who were not named — agreed to pay £2.1m in full settlement to the Horatio Myer & Co* and Hilding Anders UK PLC companies, after administrator KPMG initiated the damages claim.

KPMG was appointed administrator of the two companies in March 2013, almost immediately selling the businesses’ assets to the Steinhoff group.

KPMG said it pursued the damages claim against three foam suppliers following the European Commission ruling in early 2014 into an alleged pricing cartel, when total fines of €114m were handed down.

In a statement to creditors, KPMG said: “As set out [previously], we have been working with our lawyers in relation to a claim for damages against certain suppliers. These negotiations have been concluded and Horatio Myer & Co received £1.2m and Hilding Anders UK recovered £900,000 in full settlement before costs.”

It added that law firms Quinn Emanuel Urquhart & Sullivan LLP and Squire Patton Boggs (UK) LLP had been paid legal fees of £618,000 and £23,000 respectively for their assistance with the Horatio Myer settlement and £482,000 and £31,000 respectively for the Hilding Anders UK settlement.

KPMG said it was planning to make an additional payment to unsecured creditors of both companies as a result of agreeing the settlement with the foam suppliers.

The Furnishing Report approached all the foam companies named in the EU Commission ruling of early 2014. All declined to comment. KPMG also said it had no further comment.

* renamed HM & Co Realisations Ltd since being placed into administration

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