GUVERA AUSTRALIA PLACED INTO VOLUNTARY ADMINISTRATION

Written on the 27 June 2016 by Gold Coast Business News

GUVERA AUSTRALIA PLACED INTO VOLUNTARY ADMINISTRATION

GUVERA'S Australian arm has been placed into voluntary administration.

The Gold Coast company has announced restructuring of operations in response to the ASX rejecting its $80 million IPO bid.

This includes placing subsidiary entities Guvera Australia Pty Ltd and Guv Services Pty Ltd into the hands of liquidators.

Guvera CEO Darren Herft (pictured) told Business News Australia that Guvera will continue to operate in Australia for now, but will turn its focus on the 'high growth emerging markets' of India, Indonesia and United Arab Emirates in the short term. Philippines and Vietnam will be explored in the future.

"Guvera Limited is still trading, which is where our shareholders are, our IP and other subsidiaries around the world," says Herft.

"The business will at this stage still operate in Australia and the music site will still operate here."

Herft says '20 jobs on the Gold Coast and more overseas' will be shed because of the restructuring.

"Around 45 staff will be retained in Australia after the restructuring," says Herft.

"Guvera India, Guvera Indonesia, the whole south east Asia area really, and Guvera Middle East - this will be the core focus of the company. We've had to significantly cut back overheads and running costs from an employment point of view."

Herft says it will appear business as usual for Australian customers.

"Brand channels [like Virgin and Goodlife] will continue to operate. There's still things to be resolved but at this point we're looking to continue operating Guvera Australia as the same music site and look after its brand," he says.

Guvera has been at the centre of controversy since announcing plans in early June for an IPO where it planned to raise up to $100 million.

A successful listing would have given the eight-year-old Gold Coast company a market capitalisation of around $588 million and a $1.3 billion valuation.

According to Guvera's prospectus, a loss of $55.7 million was posted for the first half of FY16.

Update 28/6/16:

Herft says the job losses have occured in Guv Services Pty Ltd alone, which is an employment company.

He says this news will have no impact on global revenue to Guvera Limited.
 


Author: Gold Coast Business News

Latest News

ADELAIDE APARTMENT BREAKS OFF-THE-PLAN RECORD WITH $3M SALE

AN apartment in 'The Adelaidean' residential development in Adelaide has sold for more than $3 million, which...

CABCHARGE GIVEN GREEN LIGHT TO BUY YELLOW CABS IN QUEENSLAND FOR $20M

THE consumer watchdog will not oppose the proposed acquisition of Yellow Cabs in Queensland by taxi payment service C...

SLEEPING ROUGH IN THE NAME OF CHARITY: 170 BRISBANE BUSINESS LEADERS TAKE PART IN THE CEO SLEEPOUT

OVER 170 Brisbane CEOs and business leaders will brave the cold tonight to fight homelessness in what will be the big...

DOMESTIC TOURISM IN AUSTRALIA BREAKS RECORDS, INJECTS $61.7 BILLION INTO NATIONAL ECONOMY

DOMESTIC Australian tourists have spent a record breaking $61.7 billion on intra and interstate travel this year, acc...

Related News

DOMESTIC TOURISM IN AUSTRALIA BREAKS RECORDS, INJECTS $61.7 BILLION INTO NATIONAL ECONOMY

DOMESTIC Australian tourists have spent a record breaking $61.7 billion on intra and interstate travel this year, acc...

THE DOCTORS WHO PLUNGED INTO THE SHARK TANK AND SURVIVED WITH A $500,000 INVESTMENT

THEIR mission is to change the face of cancer care with an app that empowers and connects patients and care givers...

IMF BRACES FOR BIG LOSS FOLLOWING WITHDRAWAL FROM SPOTLESS CLASS ACTION

LITIGATION fund IMF Bentham (ASX: IMF) is set to lose as much as half a million dollars after it ceases funding one o...

WAGERING GIANTS TABCORP AND TATTS GIVEN GREEN LIGHT FOR $11B MERGER

THE Competition Tribunal has approved Tabcorp's (ASX: TAH) $11bn takeover bid for Tatts (ASX: TTS) on the conditi...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter