Liam Gallagher’s fashion label collapse could cause companies associated to it to lose “huge sums of money”, it has been claimed.
Pretty Green collapsed last year after reportedly losing £17.5 million and owing creditors £15.6 million.
JD Sports came to its rescue by by buying it in April last year – but it came at a price as all but one of its stores shut and hundreds of jobs were lost.
Other businesses invested in the company are said to be seeking claims totalling more than £2.8 million, as administrators close down the company records
A source has claimed that the fashion label could lose huge amounts of cash because of its financial woes.
Liam Gallagher launching his Pretty Green range at Selfridges (Image: BPM)
The source told The Sun: “Former staff and some lenders will get their cash back from Pretty Green Ltd, but suppliers and freight companies will be singing for their supper.
“If they can get any cash back it will still leave them well down, in many cases to the tune of six figures.”
Documents filed with Companies House highlighted 52 companies that had put claims into Pretty Green. It is believed the total amount of funds sought totalling more than £2.8 million.
Pretty Green collapsed last year after reportedly losing £17.5 million and owing creditors £15.6 million (Image: Manchester Evening News)
It is also claimed administrators uncovered 274 creditors who had not yet filed claims.
The unfiled claims could run up to more than £12 million in costs.
The news of Pretty Green’s financial issues comes as Oasis and Laura Ashley are among high street stores to announce they have to shut down for good after lockdown forced them to close their doors to customers.
In August last year Pretty Green was left around £500,000 out of pocket from the administration of House of Fraser, becoming one of hundreds of suppliers to lose money in the chain’s collapse.
Pretty Green t-shirts (Image: BPM)
Advisers said Pretty Green, which is named after a song by The Jam, had also been affected by the weaker retail environment as companies struggle with higher costs and the shift to online shopping.
The company’s turnover jumped to £38.2 million in the 16 months to January 2018.
Pre-tax losses narrowed to £1.5 million from a £5.6 million loss in the prior period.
Pretty Green have been contacted by Daily Star Online for comment.
Source: Celebrities - dailystar.co.uk
