Online retailer N Brown Group has reached a settlement with Allianz Insurance, agreeing to pay £49.5 million to put an end to a legal dispute over payment protection insurance (PPI) claims related to its JD Williams brand. The settlement, which was made without any admission of liability, brings about the resolution of this issue, providing much-needed clarity and removing a significant source of uncertainty for JD Williams.

The final settlement amount, £49.5 million, is notably lower than the initial figure of over £70 million, which included interest and costs. N Brown has accounted for this settlement by recognizing a provision of £25.5 million in its balance sheet for the claims. The company assures that it has sufficient liquidity to meet its financial obligations resulting from the settlement. With unsecured net cash amounting to £82.9 million and access to a revolving credit facility of £100 million, along with an overdraft of £12.5 million, N Brown is confident in its ability to cover the settlement costs.

N Brown plans to provide an update on its third-quarter trading and outlook later this week. This will shed further light on the company’s performance and give investors and stakeholders a clearer understanding of its current standing.

Overall, the settlement brings a sense of relief to N Brown Group and JD Williams, as it puts an end to a long-standing legal dispute. The arrangement of a lower settlement amount than initially projected is a positive outcome for the company, reducing financial strain. With ongoing efforts to stabilize and strengthen its position, N Brown can now focus on its future trajectory and forthcoming trading results.

For more information on N Brown Group and its latest updates, please visit their official website: N Brown Group

To learn more about the importance of settling legal disputes in business, you can read this informative article: Importance of Settling Legal Disputes in Business