Written by RogorMortis
Friday, 23 December 2016
73 jobs lost as publisher Team Rock enters administration
Administrators said the Hamilton-based business, published a stable of rock music magazines as well as the rock music website www.teamrock.com and TeamRock internet radio, had traded at a loss "for a significant period of time".
Publisher Team Rock Ltd has gone into administration with the loss of 73 jobs.
The Hamilton-based business, founded in 2012, published a stable of rock music magazines as well as the rock music website www.teamrock.com and TeamRock internet radio.
Team Rock had also acquired the Classic Rock, Prog and Metal Hammer magazines from Future Publishing in 2013 in a £10.2 million deal which took the Small/ Mid sized Deal of the Year at Insider's 2013 Deals and Dealmakers Awards.
Appointed administrators from FRP Advisory said the business had traded at a loss “for a significant period of time, with consequent constraints on the cash position”.
The administrators added: “Cost-cutting measures were implemented and despite the best efforts of the directors to seek additional investment or a purchaser for the business, no deal could be completed, leaving the company with no viable option other than to enter administration and to immediately cease trading.
“A handful of staff have been retained to assist the administrators, with all other employees made redundant.”
Team Rock employed 31 staff at its offices in High Blantyre, Glasgow and a further 49 at its offices in London.
Across both offices, seven staff have been retained to assist the administrators.
Tom MacLennan of FRP Advisory said: “The company explored every option to secure the long-term future of the business, however the constraints on the cash position of the business were such that administration was the only viable option.
“The administration presents an excellent opportunity to acquire high profile rock music titles, products and brands that have a substantial global following.
“The brands and assets could appeal to a music publishing business looking to expand its portfolio, or an entrepreneur that sees the potential for developing the brands.
“The business has now ceased trading.
“Given the financial situation of the company, unfortunately 73 staff have been made redundant with immediate effect (46 in London; 27 in High Blantyre).
“Seven staff will be retained in the short term, three in London and four in High Blantyre, to assist the administrators with magazine publishing, website maintenance and other matters.
“Our priority is to work closely with all agencies and services to ensure employees receive every support and assistance at this very difficult time”.
Most recent accounts filed by Team Rock Ltd covering the 2015 year to March 31 show the business booked a pre-tax loss of £8.8 million, having booked a pre-tax loss of £4.3 million the prior year.
The company ended the 2015 year with net debts totalling £11.7 million, up from £5.9 million the prior year.
The accounts show Team Rock completed a new £4.5 million investment round in October 2015 led by North Atlantic Smaller Companies Investment Trust Plc and new investor, Scottish Enterprise.
North Atlantic Smaller Companies Investment Trust also waived £8.9 million in loans and interest payments in exchange for ordinary and redeemable preference shares.
Team Rock generated sales of £6.5 million in the 2015 year, down from £7.5 million in 2014 and administrative expenses ballooned to £12.4 million, up from £9.3 million in 2014.
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