Lonsdale’s trade creditors told not to expect any money back

Unsecured creditors of London M&E specialist MJ Lonsdale have been told there is little prospect of them receiving any money back following the firm’s collapse last year.

The £250m turnover company, which was set up in 1986, sank into administration last October owing trade creditors £65m. HMRC is owed a further £1.8m, while the firm’s 265 staff are owed £586,000 between them.

In an update, administrator Begbies Traynor said it expected “there will be insufficient funds available to enable a dividend to be paid to the unsecured creditors”.

The update said it expected to recover between £1.1m and £3.7m from Lonsdale’s debtors but warned that further recoveries are “now tied up in legal disputes [meaning it] will be an uphill battle to achieve recovery”.

HMRC has also been warned it is unlikely to get any of its money back but preferential creditors, which include staff, have been told there will be enough money to pay them a dividend.