Sir Terence Conran is likely to be the only creditor to receive any remuneration following the collapse of the Prescott and Conran restaurant group in June 2018, according to an administrator’s report.
The restaurant group fell into administration with the immediate closure of Parabola, Lutyens and Albion Clerkenwell. Les Deux Salons in Covent Garden and Albion Neo Bankside had already ceased trading. Sir Terence Conran purchased Boundary out of administration.
The administrator has reported that Prescott and Conran had insufficient funds and assets to be rescued as a going concern at the point of its collapse.
An administrator’s progress report, filed with Companies House, has revealed that assets of the company have been sold to 2-4 Boundary Street, which lists Edmund Conran, Sir Terence and Lady Victoria Conran as directors, for £173,520.
The Boundary project was sold for £500,000, a sum which was immediately distributed to Prescott and Conran’s secured creditor, Sir Terence, who had made loans amounting to £22.5m to the restaurant group.
Upon the appointment of administrators 70 staff were made redundant. Those staff have since made claims to the Redundancy Payments Service amounting to £74,196.82.
Lutyens in Fleet Street was placed on the market shortly after administrators were appointed and an offer has since been accepted subject to landlord approval.
Administrators have said it is not anticipated there will be sufficient funds available to enable distributions to be made to preferential creditors or non preferential creditors, with any potential distribution reliant on the level of asset sales potential.
An earlier report from the administrator detailed more than £14m owed to creditors, including suppliers and HM Revenue and Customs.
The five businesses that closed all recorded pre-tax losses of up to £345,319 in the five months to 31 May 2018.
It is believed the administration will be brought to a conclusion by the end of June 2019.