The administrators of collapsed department store chain Debenhams have raked in almost £2m in fees during the current financial year alone after a hike in fees.
FRP Advisory, which was appointed to handle the process in April 2020, was paid £1.9m during April and October this year, taking the total fees received over the past two-and-a-half years to £7.3m.
FRP oversaw the sale of Debenhams’ brand and website to online rival Boohoo in a £55m deal at the start of 2021. The acquisition resulted in 12,000 job losses and 124 store closures.
New documents, first reported by The Times, show FRP partners’ charges increased from between £595 and £695 per hour to £640-£740. The rate for a junior professional and support staff rose from between £175 and £245 an hour to £190-£260.
For the six months to the end of October, FRP expects to report a 10% uplift in revenues.
Debenhams first filed for administration in 2019, wiping out shareholders including Mike Ashley’s Frasers Group, while handing control to a consortium of hedge funds including Silver Point Capital, Golden Tree and Alcentra.
The new report revealed those hedge funds had received £315m through the administration process so far.
By contrast, unsecured creditors, including pension schemes, HMRC and local councils, are unlikely to receive any return.
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