Blackandwhite owes creditors £3.7m

Blackandwhite Group\'s estimated creditor bill totals a staggering £3.7m, of which £9,454 is owed to the Financial Services Authority.

The group, which went into administration on February 4 this year, also owes £771,288 to Revenue & Customs.

A Draft Estimated Statement of Affairs, breaking down Blackandwhite’s receipts and payments as of February 15, also reveals that claims by employees, which are classified as both preferential and unsecured creditors, total £388,744 for notice and redundancy pay plus expenses.

A further £76,067 is shown as a preferential debt relating to employees’ arrears and holiday pay.

Christopher Ollerenshaw, former chairman of the group, is also an unsecured creditor of the company and is owed over £1.3m. He says: “We must move on and I’m not going to dwell on the money I’ve lost.

“Liquidity has gone from the market and while the demise of Blackandwhite is sad it’s time to look to the future.”

Blackandwhite’s staff began voicing concerns about the non-payment of commission earlier this year.

Thomas Reeh, the business’ former chief executive officer, admitted this was the result of a cash flow problem that began in 2007.

A self-employed broker and former consultant to Blackandwhite says: “Brokers have no choice, they have to move on but this is just another example of regulatory failure.

“When the FSA swept into Blackandwhite’s offices last year it should have revoked Ollerenshaw’s permissions rather than allowing him to voluntarily relinquish them so that he couldn’t do this again in the future.”