Home Fundraising owed £1.8m when it went into administration and is expected to pay back only about £225,000, documents filed with Companies House reveal.
The door-to-door fundraising agency announced it was going into administration in March.
It had entered into a company voluntary arrangement – a deal that allows companies to pay creditors over an extended period of time while still trading – in May last year.
But the new document, which details the debts in relation to the CVA, reveals that the company was unable to meet the repayments agreed on the CVA, prompting it to appoint administrators from HW Fisher & Company.
The new documents show that Home owed more than £1.8m to various creditors, including £1.5m to HM Revenue & Customs, as well as amounts ranging from £859 to £11,880 to various local councils, which Third Sector understands is money owed for business rates on the firm’s regional offices.
But the document reveals that the administrators expect the company will be able to pay off only £225,000, or 12.4 per cent of the money it owes to each creditor, meaning HMRC will receive just £182,990.
Dominic Will, former joint managing director of Home, told Third Sector: "It is regrettable that the company had to enter into administration.
"The CVA was the right route prior to that, but I’d also like to state that Home Fundraising operated for 16 and a half years and made a contribution to HMRC that was 10 times the amount it owed."
More than 1,100 employees have been made redundant as a result of the administration process, although not all of them were "actively employed" by the company at the time. The new document deals only with debts related to the CVA, so employees are not listed among the creditors.
No charities were listed among the creditors either and, in a statement released when the administration was announced, Home said its contract model of payment by results would minimise the risk of liability for its charity clients.