Creditors

What has happened?

• Rachael Wilkinson and Zelf Hussain were appointed as Joint Administrators of CK Acquisitions Limited on 28 March 2023

• The Joint Administrators completed the sale of the Cath Kidston brand, website and intellectual property to Next Retail Limited, part of Next plc, in order to realise funds to be made available for distribution to verified creditors  

• The Joint Administrators will continue to focus on achieving the best outcome for the creditors of the Company through realisation of the remaining assets

Are you a creditor of CK Acquisitions Limited?

Creditors fall into four general categories: secured creditors, employees, customers and trade creditors. 

Secured creditors 

Creditors who have security over monies owed.

Employees 

We will be contacting employees separately with details of how to submit claims into the administration.

Customers

Customers who have placed an order which was successfully received are unlikely to be a creditor of CK Acquisitions Limited as there are no outstanding products due to the customer. 

If you have an item which is faulty, we are unfortunately unable to offer a refund or replacement. However, you may be a creditor and can file a claim with the Joint Administrators, details on how to do so are below.

Customers who placed an order prior to the administration and have not received their shipment within the sale period may be a creditor of CK Acquisitions Limited and can submit a claim into the Administration. 

Any purchases made during the sale period post 28 March 2023 are final and the customer is not a creditor of the administration. If your item is faulty please see the information on submitting a claim below.

Trade creditors 

Trade creditors will include such parties as landlords, suppliers, utility providers, transport hauliers and shippers. 

We will be contacting known trade creditors shortly with details of our preferred method for creditors to submit claims and supporting documents, which is via the Turnkey (IPS) online portal. This is the most efficient and cost effective way for us to deal with your claim and also allows you to better track its status, so we recommend the use of the online portal for claim submission. Your unique login details will be sent to you shortly.

What type of creditor am I?

The above categories of creditors can be further classified as to the type of claim they have, these types will determine the quantum of distribution they will receive as the funds for each type is ring fenced.

The three main types of creditor are:

• Secured (split into security via fixed/standard and floating charges);

• Preferential; and 

• Unsecured

Secured creditors have security registered at Company House. When they have a fixed/standard charge over an asset, the secured creditor will be paid out of the realisations from that specific asset, after the costs of realisation have been deducted. When they have a floating charge over an asset, the secured creditor will be paid out of the realisations from those assets, after the costs of realisation and other expenses of the insolvency procedure, the preferential creditors (see below) have been paid in full and the prescribed part (see below) has been set aside. 

Preferential creditors primarily consist of employees for arrears of wages, accrued holiday pay, unpaid contributions to occupational pension schemes and state scheme premiums, all within certain limits. As of December 2020 this will also include certain aspects of HMRC’s claim, these claims will rank as secondary preferential claims (paid after the employees claims) and consist of the VAT, PAYE and NIC deductions. Preferential creditors rank ahead of all other creditors when realisations are achieved from assets where there is no fixed charge registered. 

Unsecured creditors are all other unsecured and non-preferential creditors (with the exception of shareholders/members). These are usually the normal “trade” creditors. They rank below preferential and secured creditors, with the exception of when the prescribed part is applicable (see below). 

Shareholders / members will be the last class of creditor to receive a distribution and they will only receive a distribution after everyone else has been paid in full. 

What is the prescribed part? 

When a secured creditor has a floating charge registered after 15 September 2003, a proportion of the funds available to them is set aside for distribution to unsecured creditors. This is the prescribed part. 

The prescribed part applies in this case as there is a floating charge created after 15 September 2003. The amount of the prescribed part is:

• 50% of net property up to £10,000

• 20% of net property above £10,000

• Subject to a maximum of £800,000

Insolvency legislation sets out how the prescribed part is calculated and if it is applicable further details will be provided in the officeholders’ reports to creditors.

What further information will I receive?

The Joint Administrators will write to all known creditors of the Company (per the creditor list obtained from the Company’s books and records) to formally notify them of the administration appointment. This will be accompanied by a general website notice informing creditors that most future documents for creditors will be posted to a website rather than being delivered by post.

The Joint Administrators will produce a report to all known creditors and members within one week of the appointment. This report is known as the Joint Administrators’ proposals and will outline steps taken by the Joint Administrators to date and the strategy going forwards. This report will be delivered via upload to the website following the issue of the website notice with the initial creditors letter. 

The Joint Administrators are also required to provide a written update on the administrations to all known creditors every 6 months. This report will be published on the website within one month of every 6 month anniversary or earlier if an Administrator vacates office or an extension to the administration is granted.

Opting Out

Creditors have the right to elect to opt out of receiving certain documents about insolvency proceedings. Any election to opt out will not affect a creditor’s entitlement to receive dividends, should any be paid to creditors. Further details on opting out will be provided to creditors in due course.

Estimated timeframe for reviewing my claim and paying a dividend?

The administration process is complex and it takes time to assess the Company’ position and provide an estimate of the value or timing for reviewing claims and making a distribution. The officeholders will include an update of dividend prospects and, if possible, a timeframe in their proposals and reports. 

Will you refund the costs incurred in preparing a claim? 

We are unable to refund the costs in preparing a claim. Consequently, we cannot refund any expenses incurred in obtaining information necessary to make a claim. 

How to submit a claim

Our preferred method for creditors to submit claims and supporting documents is via the Turnkey (IPS) online portal, as this is the most efficient and cost effective way for us to deal with your claim and also allows you to better track its status, so we recommend the use of the online portal for claim submission.

In order to utilise this system, any creditors who have not received a letter with your unique login details within two weeks of the appointment, please contact us on uk_ckacquisitions_creditors@pwc.com. 

In preparation for submitting your claim please ensure that you have all relevant details such as your order confirmation or receipt, invoices or other documentation demonstrating the amount owed to you. 

If you have any issues or further queries, please email us on: uk_ckacquisitions_creditors@pwc.com 

Rachael Wilkinson and Zelf Hussain have been appointed as Joint Administrators of CK Acquisitions Limited to manage its affairs, business and property as its agents and act without personal liability. All are licensed in the United Kingdom to act as an insolvency practitioner by the Institute of Chartered Accountants in England and Wales. The Joint Administrators are bound by the Insolvency Code of Ethics which can be found at: https://www.gov.uk/government/publications/insolvency-practitioner-code-of-ethics.

The Joint Administrators may act as controllers of personal data as defined by UK data protection law depending upon the specific processing activities undertaken. PricewaterhouseCoopers LLP may act as a processor on the instructions of the Joint Administrators. Personal data will be kept secure and processed only for matters relating to the Joint Administrators’ appointment. Further details are available in the privacy statement on the PwC.co.uk website or by contacting the Joint Administrators.