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18 January 2013 | Adam Leach
A High Court judgment that followed the administration of lingerie retailer La Senza last year could offer support to suppliers to the trio of chains that have suffered the same fate this past fortnight, according to a lawyer.
This week both HMV and Blockbuster announced they are entering administration, a week after the same step was taken by Jessops. Suppliers to all three firms will now need to wait and see how much of the money they are owed they will be able to get back. But according to a lawyer, they may be able to secure their payments from the administrators.
Craig Neame, partner at Holman Fenwick Willan, said: “An English High Court judgment last year, which followed the collapse of the high street store La Senza, may provide some comfort to those in the supply chain owed monies by the likes of HMV, Blockbuster and Jessops. The judgment, in March 2012, effectively allows them to enforce their liens - a form of security interest granted over an item of property to secure the payment of a debt - against administrators acting on behalf of the insolvent companies.”
HMV entered into administration on Tuesday and Blockbusters announced that it was also entering administration the following day. Both companies have appointed Deloitte to act as administrators. Jessops announced last week and appointed PwC to handle its administration.