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worldstoresA NEW report into the prepack sale of WorldStores to Dunelm has revealed the amount of cash lost by prior investors in the ecommerce group.

 

Dunelm acquired the circa £100 million turnover WorldStores business for £8.44 million following the appointment of administrator KPMG last November.


The deal secured the future of WorldStores, its subsidiaries Achica and Kiddicare, and provided continuity of employment for all 650 of its staff.


A new report by KPMG puts more figures into the public domain for the first time, following earlier-announced proposals that didn't disclose total shareholder investment or amounts owing to unsecured creditors.


Statutory filings now show WorldStores investors and creditors faced a total shortfall of £115.9 million, including nearly £68 million of cash pumped into the group for shares by the investment community since its launch.


The £8.44 million received as part of the sale, of which around £950,000 was cash, will repay a part of the loans owed to secured lenders Kreos Capital and Harbert European.


Other creditors are owed the lion's share of £50 million, including £16 million in shareholder loan notes to investors such as Goldman Sachs, Esprit Capital, Advent Private Equity and Balderton Capital, on top of prior equity investment.


Crown debt is north of £2 million with Google Ireland also listed as being owed well in excess of £1 million.


There are also a number of furniture and home furnishings suppliers listed with five and six-figure sums owing to them.


However, as part of the deal to rescue WorldStores, Dunelm also agreed to inject up to £15 million to fund historic working capital and to manage disruption for suppliers and customers.


For more detail, see today's Debt Report (June 16, update).



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