JD Williams-owner N Brown has announced it is to settle an ongoing legal dispute with Allianz Insurance for £49.5m by the end of the month.
In a statement to the London Stock Exchange, N Brown said the final sum would remove “a significant element of uncertainty” for the clothing and footwear brand.
The claim was first issued against JD Williams in January 2020 and related to “significant amounts of redress” paid to customers by JD Williams and the insurer “in respect of certain historic insurance products, including payment protection insurance”.
N Brown said the £49.5m settlement had been agreed upon without the admission of liability and was also less than Allianz’s final claim, which exceeded £70m.
The Manchester-headquartered group, which has other retail brands including Simply Be and Jacamo within its portfolio, said it had “sufficient liquidity” to meet the cash flow requirements of the settlement.
This included unsecured net cash of £82.9m as of December 31, 2022, as well as access to a revolving credit facility of £100m and overdraft of £12.5m, which are at present undrawn.
N Brown said: “The settlement removes a significant element of uncertainty and distraction for JDW and allows the company to focus on creating shareholder value through its core business activities as it continues its transformation.”
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