Some former staff of collapsed fundraising firm paid less than 1 per cent of what they were owed

Unsecured creditors submitted claims totalling more than £3.3m, but administrators had only £15,000 to share among them

Unsecured creditors, including some former employees, of the collapsed telephone fundraising company GoGen received less than half of 1 per cent of what they were owed, papers show.

GoGen ceased trading in July 2015 with the loss of 485 jobs after being the subject of a national newspaper investigation into fundraising practices

Previous documents showed that 272 employees were classed as preferential creditors, who were paid a total of almost £300,000 by the administrator for redundancy, back pay and holiday pay.

But some employees were classed as unsecured creditors, who were among the individuals and companies that submitted claims totalling more than £3.2m to the company after it went into adminstration. 

A report by the administrator BDO, published on Companies House in May, showed that unsecured creditors were paid a total of £15,326. 

“A first and final dividend of 0.47 pence in the pound was therefore paid to unsecured creditors," the report said. 

Unsecured employees received a total of about £2,800 from the administration process, according to the report. 

The HSBC bank was owed £724,426, but received only £66,873, the report said. 

The next step, the report said, would be for the company to be dissolved. 

Topics:
News Fundraising

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