GUVERA AUSTRALIA PLACED INTO VOLUNTARY ADMINISTRATION

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.
 

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Four ways businesses can use artificial intelligence to triumph in 2022
Partner Content
The last two years have delivered major disruption to the technology industry and broad...
PROS
Advertisement

Related Stories

Vinomofo buys food and wine events company Revel

Vinomofo buys food and wine events company Revel

Online wine retailer Vinomofo has this week acquired Melbourne-base...

Seven West buys stake in fintech Raiz for $10 million

Seven West buys stake in fintech Raiz for $10 million

Australian media giant Seven West Media (ASX: SWM) will take a stra...

Webjet buys Trip Ninja as bookings rebound on travel sector recovery

Webjet buys Trip Ninja as bookings rebound on travel sector recovery

Webjet (ASX: WEB) has today announced the acquisition of Canadian t...

Will Australia follow Europe into a fourth COVID wave?

Will Australia follow Europe into a fourth COVID wave?

Europe is facing a fourth wave of COVID. As we watch on, it is reas...