LIVERPOOL stores group TJ Hughes collapsed with debts of £433.5m.
And administrators concede there is no possibility of selling the former 57-store chain as a going concern.
They are now selling as much stock as possible and closing stores to raise as much as they can.
It was also revealed yesterday that a further 12 stores will close over the next few days, resulting in the loss of 585 jobs. They include outlets in Bootle and Warrington.
Debts of £23.8m to secured creditors, believed to include financier Burdale and turnaround group GA Europe, are likely to be paid, but they conceded there was “no prospect” of any funds for unsecured creditors.
In their first report to creditors since taking over as joint administrators on June 30, Ernst & Young’s Tom Jack and Simon Allport have revealed the extent of losses.
In the year to January, 2011, it made an operating loss of £7.6m, despite sales of £276.2m.
That compared with an operating profit of 6.2m on sales of £266.7m the previous year.
But, in the 18 weeks to June 4, the chain made a net loss of £10.1m on sales of £69.1m. The report said: “While losses for this period were not unusual given seasonal trends, the magnitude reflected the challenging market conditions.”
