THE owner of Lewis’s had debts of £10m when it collapsed into administration in May.

Non-preferential creditors, who are owed nearly £7m by Vergo Retail, are not expected to receive anything once the administration process is complete.

Debts left by the 20-strong department stores chain include £200,000 owed to customers who had put down deposits or payments in full using non-Visa debit cards or by cash but then had their orders cancelled.

However, Vergo’s owner, David Thompson, had secured his £2.75m loan against the company assets although the administrators said it was “unclear” if he will be fully repaid.

There is expected to be a “partial distribution” to preferential creditors – staff who are owed £259,000 in arrears and holiday pay – with the Government expected to have to step in to meet the shortfall.

Mr Thompson had already announced that the iconic Lewis’s store would close before he called in the administrators, but had been trying to continue trading at 19 other stores.

However, Sarah Bell and Steven Muncaster, of insolvency firm MCR, were appointed on May 7.

Their appointment came less than three years after Vergo acquired Lewis’s out of an earlier administration, which itself was also less than three years since Mr Thompson had taken control of Lewis’s.