Creditors of MK One, the value clothing chain that went into administration in May, will receive 1p at most for every £1 they are owed.

Collectively they are owed more than£50 million, but will receive only a fraction of that, The Daily Telegraph reported.

MK One was controlled by Icelandic investor Baugur, which sold it to restructuring firm Hilco. The retailer collapsed into administration three weeks later.

Administrator Deloitte & Touche’s report into MK One’s failure reveals that the retailer made a loss of£20 million in the year to January 2008, on sales of£123 million.

More cash was injected into the business between January and April, when problems such as the withdrawal of credit insurance hit and MK One was sold to a company connected to Hilco. Administrators were appointed when it became clear that funding requirements were prohibitive.

The report said that 100 MK One stores, as well as the company’s intellectual property, have since been sold to Jet Star for£7.1 million. Jet Star is connected to Mark Brafman, a former shareholder and director of MK One in the 1990s.