Fashion brand JD Williams is to pay nearly £50m to settle a claim from Allianz Insurance.
The label, which is owned by Manchester-headquartered N Brown, is to hand over £49.5m after a claim was first made in January 2020.
The dispute related to "significant amounts of redress" paid to customers by JD Williams and the insurer "in respect of certain historic insurance products", including payment protection insurance.
READ MORE: Click here to sign up to the BusinessLive North West newsletter
N Brown added that the settlement has been agreed without the admission of liability.
The "full and final settlement" of £49.5m is lower than the sums claimed by Allianz Insurance, which had exceeded £70m.
In a statement issued to the London Stock Exchange, N Brown said: "The settlement removes a significant element of uncertainty and distraction for JDW and allows the company to focus on creating shareholder value through its core business activities as it continues its transformation."
The group also said it has "sufficient liquidity to meet the cash flow requirements of the settlement", including unsecured net cash of £82.9m as at December 21, 2022, as well as access to a revolving credit facility of £100m and overdraft of £12.5m, which are both fully undrawn as at January 9, 2023.
Payment of the settlement is expected to be made by the end of January.
Shares in N Brown, whose brands also include Simply Be and Jacamo, rose by almost 7% in early trading following the announcement.
The group is expected to publish its results for its third quarter on Thursday, January 12.
In October 2022, N Brown revealed that its revenue for the six months to August 27 totalled £331.5m, down 4.6% compared to the same period in 2021.
Its statutory pre-tax profits were also slashed from £28.4m to £7.2m.
READ MORE:
How a sausage entrepreneur overcame Dragons' Den rejection to win major deal
Luxury Lake District hotel Armathwaite Hall bounces back with record results
Historic cheese maker which collapsed owing almost £4m sold out of administration
The 12 latest top hires and promotions from across the North West
Timpson rescues watch and jewellery repairer In-Time saving 110 jobs
