(Alliance News) - UK clothing & footwear retailer N Brown Group PLC on Wednesday announced that Allianz Insurance PLC seeks to increase the scope of its original claim against the company to up to GBP36 million.
Shares in N Brown were down 7.7% at 58.40 pence in London in morning trading following the announcement.
The claim forms part of ongoing litigation between N Brown subsidiary JD Williams & Co Ltd and insurance giant Allianz regarding the sale of historical insurance products. N Brown, which owns Jacamo and Simply Be, is currently involved in a claim and counterclaim with Allianz.
Due to the complexity of the litigation, N Brown said it could not reliably estimate the size of the financial hit and therefore had not made a provision for the claim, opting instead to make a contingent liability.
Proceedings in the case remain at an early stage, N Brown clarified, with each party only recently having completed a long disclosure exercise.
By Will Paige; willpaige@alliancenews.com
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Brown Group (BWNG)