THE INSOLVENCY of bespoke furniture maker and retailer Paolo Marchetti Interiors Limited will cost shareholders and creditors more than £1.6 million, according to a new report.

Statutory filings by liquidator John Paylor of Guardian Business Recovery—appointed to oversee the distribution of the company's assets at the back end of March—reveal the depth of outstanding debt.

The privately-owned business, which sold high-end cabinet furniture to consumers across London and the South East from its Bloomsbury, London and Woking, Surrey showrooms, owes unsecured creditors approaching £1.2 million.

The total outstanding rises to nearly £1.7 million including a £500,000 loan that was capitalised back in 2013.

Assets include the rent deposits on its Tottenham Court Road and Woking stores, which have a collective book value of £236,000. Landlords hold security so it is not known how much, if anything, they will realise for creditors. The report indicates that less than £30,000 is estimated to be realised from Paolo Marchetti Interiors' assets.

Unsecured creditors include a raft of private individuals, with the largest single creditors listed as MD Doors Inc., which has a £653,268 loan outstanding, and Confurn Asia, owed £68,859.

For more, see the Debt Report.

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