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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.
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