Mporium Group appoints Begbies Traynor for administration

26 November 2019 2 min. read
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Begbies Traynor has overseen the sale of Mporium Group’s assets, following its collapse into administration earlier in November 2019. Kirstie Provan and Gary Shankland of Begbies Traynor forged a deal to sell the assets to a new company, preserving all of the firm’s jobs in the process.

Marketing technology is a general term for digital tools used to assist marketing teams in their work. The technology is mostly used in the sphere of digital marketing, and also for the optimisation of offline marketing channels. The sector has grown substantially since it was first identified as a standalone industry in 2011, when the number of major vendors of MarTech stood at around 150. By 2018, demand was sufficient for this figure to have boomed to approximately 7,000.

Despite this illustrating heightened demand for MarTech, however, it also resulted in the space becoming extremely competitive. This has resulted in the collapse of Mporium Group, which succumbed to market pressures in November, having been unable to address its financial position. In October, the firm had already requested that shares be temporarily suspended from trading on the Alternative Investment Market (AIM), due to the uncertainty regarding its finances.

Mporium Group appoints Begbies Traynor for administration

A statement from the firm read, "The board has concluded that the company is no longer viable as a going concern and is taking advice as regards the steps to be taken to wind up the affairs of the company. The board does not expect there to be any surplus available to shareholders of Mporium following the administration of MPML and that Mporium has no other assets with any material value left in them likely to produce such a surplus. Notices in this regard are expected be sent to shareholders and creditors of the company in the near future.”

As a result, Mporium appointed Kirstie Provan and Gary Shankland of Begbies Traynor as administrators to its trading subsidiary. Following the installation of administrators, the business and assets of Mporium were sold to a new company, which has preserved all of the jobs of the employees.

Coinciding with the news, finnCap, the company's nominated advisor, resigned from its role dual-role – in which it was also joint broker of the firm – with immediate effect. A nominated advisor is a firm or company which has been approved by the London Stock Exchange (LSE) as a nominated adviser for the AIM, and whose name has been placed on the register of nominated advisers published by the LSE. Mporium said it has no current intention of appointing a replacement nominated adviser.