Feeds

HSBC facing '£19m' loss on Granville collapse

Gloomy prospects for unsecured creditors

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

HSBC, Granville Technology Group's main banker, is unlikely to recover any of the £19m it is owed by the group, according to reports.

Granville, the company behind the Time and Tiny computer brands, collapsed at the end of July with debts estimated at over £50m.

Granville probably owes around £30m in unsecured debt to trade creditors, a spokesman for Grant Thorton confirmed today. In addition, secured debt is likely to total £20m.

The Indepedent on Sunday said yesterday that HSBC was Granville's main secured creditor.

Martin Ellis of Grant Thornton UK LLP, the joint administrator of Burnley-based Granville, told the Independent on Sunday: "There's no real prospect (of a return) for unsecured creditors".

Ellis would not comment on the position of secured creditors, and has yet to put a figure on monies owed in rent to landlords, and customer liabilities. However, he added that income generated from sales of the company's assets would not be great, given the size of the company.

Grant Thornton won't go into details about the composition of the HSBC debt, and at the time of writing HSBC had not returned our calls seeking comment on the issue.

Grant Thornton is reported to have received around 300 enquiries from parties interested in buying parts of the Granville Group business. However, dealing with these has been complicated by a dispute over ownership of the Tiny and Time brands.

"We are still dealing with stocks and leases, and dealing with brands and ownership to the extent that is resolvable," Mr Ellis told the IoS.

MPs are now demanding an inquiry into the company's slide into administration, which resulted in the loss of 1,500 jobs. ®

Related stories

MPs demand Granville Technology probe
Quantum eyes Tiny brand
Tahir Mohsan in talks to save Time jobs

Beginner's guide to SSL certificates

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.