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N Brown stock slumps 10% as PPI claims spike

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(Reuters) – Shares in N Brown <BWNG.L> fell as much as 10% after the fashion retailer said it would set aside another 20-30 million pounds in provisions relating to the mis-selling of payment protection insurance as it saw 10 times the average volumes of claims in August.

The company said its full-year net debt is expected to be in the range of 460 million pounds to 490 million pounds, up from a prior forecast of 440 million pounds to 460 million pounds.

A surge in claims leading up to the Aug.29 deadline for consumers to complain about what is now considered Britain’s costliest consumer banking scandal had caused UK’s big banks Lloyds <LLOY.L>, Barclays <BARC.L> and RBS <RBS.L> to set aside additional provisions this month.

N Brown shares were down 7% at a five-month low of 102.8 pence by 0709 GMT.

(Reporting by Muvija M in Bengaluru; Editing by Arun Koyyur)

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