TJ Hughes creditors lose £400m

Discount chain TJ Hughes collapsed with total debts of £433.5m, administrators at Ernst & Young have said, and most creditors have little hope of recovering much of their money. The group, which collapsed in June despite investment from turnaround specialist Endless LLP, heard from 156 interested parties over a takeover or sale of the business, but no concrete offers have emerged. Ernst & Young said “there will not be sufficient funds to enable any distribution to non-preferential creditors”, who are set to lose up to £409m. The firm has managed to make a net £35.6m in sales since calling in the administrators, but this will be swallowed by preferred creditors. A further 12 TJ Hughes shops will be closed soon, bringing the total to 42.