The viral publisher Unilad will be placed in administration. This is as a result of the financial challenges its current owners are facing.
Bentley Harrigan is the current owner of Unilad and took over back in 2014. This is following its purchase of a majority stake from founder Alex Partridge.
Currently, Bentley Harrington has debt totalling £6.5 million, with £1.5 million of this owed in UK taxes.
Administrators Leonard Curtis Business Rescue and Recovery has said that Andrew Poxon and Andrew Duncan have been appointed joint administrators.
Leonard Curtis Business Rescue and Recovery commented:
“The joint administrators are seeking offers for the business in order to preserve jobs and maximise the return to creditors. It is understood that the company employs in excess of 200 people.”
Unilad has a huge social media presence. It has 60 million followers, a 1 billion weekly reach and 4 billion monthly video views across nine different channels. Its Facebook account alone has 39 million followers and is known for posting viral videos and stories. Equally, last year, it was named one of Facebook’s most popular pages. With its headquarters in Manchester, Unilad also has secondary offices in London and New York.
The decision to place Unilad in administration follows a hearing at a specialist Insolvency and Companies Court in London. Judge Clive Jones was told that directors of the British companies had agreed administration was the best option.
Moreover, HM Revenue and Customs were also in favour of administration.
In addition, Judge Clive Jones was also informed by founder Alex Partridge’s lawyer that his client was owed £5 million. This is following a separate legal case against the British firm.
Unilad’s current financial backer, Linton Capital, has proposed administrators £10 million. This is in order to “acquire the substantial part of the business”. Linton Capital has offered this as part of a joint bid with RocketSports, an internet investment company.
However, the £10 million sum is well below valuations previously given to the online publisher.
