Unsecured TM Lewin creditors lose £30m

By

Nigel TAYLOR

Published
Feb 3, 2022

The administration filing of shirt producer/retailer TM Lewin left unsecured creditors almost £30 million out of pocket following its 2020 pre-pack deal, reported The Times newspaper.

TM Lewin was bought for around £25 million by investment firm Torque in May 2020. However, the company was put into a pre-pack administration the next month that saw all its 66 stores shuttered and the loss of 600 jobs. 

At the time, Torque Brands said that lockdowns had meant the business was no longer viable in its present form and that it would focus on an online model.

A recent report from insolvency firm Resolve seen by the newspaper said that Torque, as a secured creditor with a floating charge over the company worth £28.4 million, would receive about 79% of its money back. However, employees were still owed £1 million in outstanding wages, holiday pay and pension arrears.

Although unsecured creditors, which include landlords and suppliers, claim that they are owed £30.4 million, the administrator said they would have to share a £600,000 pot. 

A spokesman for Torque told the newspaper that “as it was a historical matter we will not be commenting”.

The shift to home working during in the pandemic led to a decline in demand for men’s tailoring and smart shirts, a trend that is expected to continue as many workers divide their time between home and office working.