UK: Creditors meet to recoup First Quench funds
Some of the biggest names in the UK drinks industry, including Diageo, have met with administrators of First Quench Retailing in an attempt to recoup funds owed by the collapsed off-licence group.
Diageo subsidiary Percy Fox is owed more than GBP1.3m (US$2m), while Diageo Great Britain is owed close to GBP0.6m, according to a final report on First Quench filed by administrator KPMG late last week.
Creditors were due to meet in London today (6 January) to discuss repayment with KPMG.
First Quench, which owned the Threshers and Wine Rack off-licence chains, is likely to be liquidated after KPMG failed in its attempts to sell the business as a going concern.
A majority of the group's 1,300 stores across the UK have been closed down, leading to thousands of job losses.
However, the administrator said last week that it expects to use proceeds from assets and stock sales to pay off debts.
"We believe that secured and preferential creditors will be paid in full and we anticipate that there will be sufficient funds to enable a dividend to the unsecured creditors," said KPMG.
"However, it is not yet posssible to advise on the amount or timing of any such payment," it added.
For more on the collapse of First Quench, click here.
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