Blinkbox Music Limited (05717612): administration
- Status
- Administration ended
- Administration began
- 2015-06-11
- Administrators' firm
- Evelyn Partners
- Formerly
- WE7 Limited; Media Graft Limited
- Incorporated
- 2006-02-22
- Location
- London
- Industry
- 58290 Other software publishing
Why it went into administration
- Cash flow / liquidity pressure
From the administrators' statement
Even after the aforementioned redundancies, the Company retained a work force of circa 90 people with a corresponding significant llability towards them Certain liabilities of the employees had been guaranteed by BBMHL as part of the acquisition from Tesco. In light of these liabilities, and as part of a restructuring process, the Company sought to reach a compromise with its creditors, including its employees.
We carried out a review of the financial position of the Company and we estimated that it would require an investment of c.£4m from the Guvera Group to stabilise the finances of the Company through a Company Voluntary Arrangement (CVA) and for it to continue to trade and restructure its finances for a year post-CVA. We were initially told that this process would be acceptable to, and would be funded by, the Guvera Group. However, Darren Herft of the Guvera Group later decided that this form of restructuring was too public for the Guvera Group and might interfere with its own fund raising. On this basis Darren Herft Instructed that the restructuring of the Company should happen by way of less public informal arrangements with all of the creditors of the Company individually, with all of the difficulties this approach would entail,
As part of this restructuring process two further redundancy rounds occurred, over a brief period of time. Also, during thls period, the business of the Company and of BBMHL began to operate much more closely together under the direction of Darren Herft through Brad Christiansen, who he had dispatched from Australia, and of BBMHL management.
Administrators' statement of proposals (2015-08-17) · Companies House register