N Brown saddled with £49.5m bill after settling legal dispute

Online retailer N Brown has agreed to pay Allianz Insurance £49.5 million to end its long-term legal dispute.

The case goes back to January 2020, when Allianz was forced to pay £27m to JD Williams & Company, a subsidiary of N Brown, after customers were missold payment protection insurance (PPI).

Allianz subsequently sued N Brown, issuing a claim that eventually reached £70m.

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However, the retailer has today settled the dispute without admission of liability for £49.5m and made a £25.5m provision for the claim in its balance sheet in August 2022.

N Brown said it has sufficient liquidity to meet the cash flow requirements of the settlement, including unsecured net cash of £82.9m as at 31 December 2022, as well as access to a RCF of £100m and overdraft of £12.5m, which are both currently fully undrawn.

After satisfying the settlement, the company has said it will retain a “strong unsecured net cash position with material additional liquidity facilities remaining undrawn.”

As part of the statement issued this morning, the company also said it will release its Q3 trading and outlook update on 12 January 2023. 



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