Retail news round-up August 21, 2013: HMV pension fund and other creditors to lose £250m; Asda data reveals disposable income in decline
HMV pension fund and other creditors set to lose £250m
The HMV pension fund and other creditors together are set to lose more than £250m after the collapse of HMV into administration earlier this year.
The administrator’s progress report from Deloitte revealed that HMV’s defined benefit pension scheme, which is entitled to £26m, and unsecured creditors such as suppliers and landlords, who are owed £157m, are not expected to receive anything from the administration, The Telegraph reported. Although bank lenders have recovered £38.6m from HMV and advisers are in line to collect up to £15m.
It is understood that the pension fund has applied to enter the Pension Protection Fund.
HMV collapsed into administration in January but was rescued by restructuring expert Hilco.
Asda data reveals disposable income in decline
Asda’s latest Income Tracker (AIT)has revealed that disposable household income in the UK is in decline, while the average cost of living is increasing. According to AIT, the average UK household had £160 in disposable income each week in July 2013, which is down by £1 as compared to the level seen in June 2012, while essential items have tripled in price by 2.9% .
AIT’s data show that the income growth is now down to 2.2% due to weak wage growth, a cap on working-age benefits, and higher energy bills, which have increased by 8.2% over the past year.