KPMG Winding Up Sale of Marketing and Recruitment Firm
Stockton-based marketing and recruitment firm Pearson Advertising & Marketing is owing an estimated £1.1 million to its creditors after going into administration in November 2010.
Administrators from KPMG, Mark Firmin and Howard Smith, are currently in the process of winding up the sale of Pearson which include finalizing the figures of the company’s total assets, initially valued at £830,000, £438,572 of which represents an outstanding loan by its owner Simon Pearson. KPMG administrators told creditors during a meeting that they may be able to recover £127,186 of the loaned amount, or 29 percent of the total sum owed to them.
Simon Pearson was allegedly paid £100,000 in dividend during the financial year ending March 31, 2010, few months away from the time the company went insolvent.
Of the £1.1 million debts of Pearson, £770,000 is owed to trade creditors while £170,000 to Barclays, which is a secured creditor of the firm. Pearson’s staff will also receive £289,000 overall while Her Majesty’s Revenues and Customs is likely to get £59,000.
But the figures will be announced with finality after KPMG administrators have gone through checking the books of Pearson against the debt claims of creditors few months from now.
In late 2009 until 2010, Pearson revenue had deeply suffered from drastic public spending cutbacks and fell by around £5m, from £15.4m to £10.3m, after which KPMG administrators were called in.