Fri, 12 Jun 2015 | ADMINISTRATION
Online music streaming service Blinkbox has entered administration, not even a year since it was bought by the Australian Guvera group.
Guvera bought the business from Tesco in February of this year. Tesco had launched the business as part of its former chief executive, Phil Clarke's plan to develop a digital entertainment offering to diversify the group.
Despite claiming to have some 200,000 active monthly users, the company never managed to get close to its competitors, Spotify and iTunes.
Now Smith & Williamson have been appointed as administrators of Blinkbox as it appears the new owners were unable to turn its fortunes around. A statement from the administrators read: “The company has faced significant financial pressure in recent months, since its acquisition by the Guvera group.
“This is a highly competitive industry and despite an active user base the business has continued to struggle financially.”
Guvera did attempt to turn things around, implementing various financial restructuring procedures and cutting staff numbers. However, this didn't seem to be sufficient to make the difference needed to keep the business going.
The administrators added: “Financial pressures have continued to grow, and the company's director, after trying to achieve a quick sale of the company/business, was faced with little choice but to place the company into administration.”
View other businesses in administration.
Or read more about the various acquisitions and bids for Blinkbox:
Tesco decides to sell off Blinkbox
Vodafone in discussions to buy lossmaking Blinkbox
TalkTalk emerges as potential Blinkbox buyer
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