N Brown to pay £49.5m in JD Williams legal dispute with insurer
Online retailer N Brown Group has a hefty £49.5 million bill to settle following a dispute with Allianz Insurance over PPI claims related to the
The fashion group said Monday it has reached a settlement with its insurer over a dispute related to “significant amounts of redress paid to customers by JDW and the Insurer in respect of certain historic insurance products, including payment protection insurance”.
Under the settlement “made without admission of liability”, JDW will now pay Allianz £49.5 million in a “full and final settlement of the dispute”, it said, noting the final sum was below an initial figure of over £70 million. inclusive of interest and costs.
A provision of £25.5 million in respect of the claims by the insurer was recognised in the company's balance sheet at 27 August 2022. “By the settlement, the dispute has been brought to an end”, said N Brown.
It added: “The settlement removes a significant element of uncertainty and distraction for JDW and allows the company to focus on creating shareholder value through its core business activities as it continues its transformation.”
N Brown also noted it has “sufficient liquidity” to meet the cash flow requirements of the settlement, including unsecured net cash of £82.9 million at 31 December 2022 as well as access to a RCF of £100 million and overdraft of £12.5 million.
The company will release its third-quarter trading and outlook update on Thursday (12 January).
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