Claims worth almost £2m have been filed in the case of the collapsed telephone fundraising agency GoGen, according the latest report from its administrator.
GoGen went into administration on 28 July 2015 with the loss of 485 jobs after being the subject of a national newspaper investigation into its fundraising practices.
Last summer, Giuseppe Iantosca, a former director of GoGen, blamed the fundraising firm’s closure on a "reduction in business resulting from misleading media coverage".
The administrator’s progress report, published earlier this month, shows that HSBC Bank, a secured creditor, was owed £724,426 at the date of administration.
Of the company’s 485 staff, 272 have preferential claims in the administration. These are former employees who are owed holiday pay, arrears of pay capped at £800 and deductions taken but not paid over to occupational pension schemes. The total owed to them is about £194,000.
Approximately £1.1m in claims from unsecured creditors have been lodged.
After payment of preferential claims, the administrator said, GoGen’s net property should be worth £310,000. This means the amount legally available for unsecured creditors is £65,000, dependent on the final figure of asset realisations.
The administrator BDO accrued time costs of £221,590, which have not been drawn. These costs accrued mainly because of the significant time spent dealing with employee queries and the complexities arising from the company employing 405 staff members on zero-hour contracts.