Reviewed: 10th May 2016
A multi-million pound business focussed primarily on delivering cloud-based music services on a B2B basis in the UK and elsewhere in Europe has been entered into administration.
Omnifone, whose most recent accounts show full-year turnover worth £38.5 million, installed a new chief executive and announced the launch of two new products as part of a change of strategic direction just two months ago.
“We have identified several exciting opportunities to enable digital service providers, rights holders and other industry stakeholders to select the key components of our music cloud that they need, to build products that enhance their services and operations,” said Omnifone’s newly-installed CEO Doug Imrie in a statement issued on March 10th 2016.
However, it has since emerged that the business was already late in filing its financial figures with Companies House even as its new chief executive was being promoted from his former position of managing director and chief operating officer.
With several years of reporting multi-million pound losses behind them, Omnifone’s bosses were eventually forced into the position of calling in administrators in recent days.
The London-based business is to continue trading while potential buyers for its various technology assets are sought by administrators.
Already its 120-strong workforce has been more than halved, with 50 members of staff having been retained to help facilitate the process of finding new buyers for the company’s assets.
Having first been established in 2003, Omnifone has worked with and provided services to some of the world’s leading music providers including Guvera, Sony, Spotify and Rara.
With working relationships relating to operations in as many as 35 countries worldwide, the UK company has a licensed catalogue of music that covers in excess of 35 million songs.
“Administration was the most viable option as it allows Omnifone to continue to trade as usual whilst we market the technology assets for sale,” newly appointed administrators said in a statement.
“There is a great deal of interest in Omnifone’s technology assets and their future potential and we are currently in discussions with household names within the music industry.” Real Business Rescue provide director advice online, over the phone, or in-person at one of our 75 UK offices or a place of your convenience.