Digital Media Company Placed in Liquidation
The Company, which commenced trading shortly after its incorporation, was formed as a vehicle for the provision of digital media services.
The Company developed subscription-based online magazines. These included a quarterly magazine owned by a third party that publicised specialist high-end watches, and a rugby magazine owned by one of director’s.
Despite attracting the above contracts, the Company remained unable to turn a significant level of profit. Subscriber numbers were not as high as anticipated, with efforts to secure readers, such as the offering discounts largely unsuccessful. The Company’s attempts to sell advertising space, which was considered key to boosting its income, similarly failed, with the Company being unable to generate interest even by offering it free of charge.
The Company was then contracted to produce a British Motor Heritage magazine, designing, editing and publishing physical copies alongside an online version. Unfortunately, there was a dispute between two of the company’s directors which resulted in disruption to the business and eventually the resignation of one of the directors.
On hearing of the resignation, the British Motor Heritage, decided to terminate the contract and take the project elsewhere. Thereafter, the Company effectively ceased to trade, as although several future projects were promised, including the possibility of undertaking work for an event company, no further contracts came to fruition.
The company were recommended to seek the advice of AABRS, who concluded that a valuation of the remaining contracts was required. However, in the meantime, the recommendation was that the company was to be placed into liquidation.