Phones 4u creditors expected to get little return on money owed

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Retailer collapsed with debts of almost £600 million in September 2014

Phones 4u creditors are expected to hear this week that they will receive just 0.4p in the pound following the retailer’s collapse last year.

Administrators, PricewaterhouseCoopers, had previously warned unsecured creditors that they would see little return on their money.

Unsecured creditors were owed £168 million while banks and bondholders were owed £430 million, with the latter taking priority.

According to a report in the Telegraph, Phones 4u owed £78 million in taxes at the time of its collapse, a sum of money the exchequer is highly unlikely to see.

BC Partners, the private equity firm which owned Phones 4u, had already recouped the estimated £6-£700 million it spent purchasing the company, through a sale of bonds on the Irish stock market in 2011.

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