Telcogames Sale Possible
Jason Godefroy and Paul Clark, partners from Menzies Corporate Restructuring (MCR), have sent out a press release covering the latest status of Telcogames.
Currently, Telcogames employs eight people in it's UK offices (in Oxford Street and Liverpool). The aggregator is five years in business and has an annual turnover of around £1.5 million. According to the press release, Menzies is already talking with interested parties.
Jason Godefroy, MCR commented, “The company’s expansion plans included games development through the acquisition of development studios but it would appear that this restricted working capital, resulting in a build up of creditor arrears and cashflow pressures. Whilst the company made efforts to reduce costs, administration was necessary to provide protection from creditors and hopefully, this will allow the business to continue as a going concern. As Telcogames has an excellent reputation globally this puts it in a strong position to help us find a suitable buyer to take the business forward.”
With the statement above in mind, MCR expects a high amount of interested parties for the company, but also still asks newly interested companies to give Menzies a ring at 020 7487 7240.
Read more about Companies & M&A
Comments
Posted by: Teymur | Apr 29, 2008 6:23:18 PM
These guys make me laugh. "Excellent reputation". Who is going to buy that?
Posted by: n/a 2 | Apr 29, 2008 10:37:45 PM
They never had any excellent standing at the publishers and developers! What are they smoking? They dont know the market and say things like that. I like the system!
They should NEVER ever get a position in the whole industry.
Telcogames financed the salaries plus the developers studios they acquired from the money they own other publishers.
Posted by: Curly Wurly | Apr 30, 2008 8:38:59 AM
They should get a position in prison, never mind the industry.
Posted by: John | Apr 30, 2008 10:44:32 AM
"provide protection against creditors" ....and who protects the creditors?
Posted by: John | May 2, 2008 10:59:21 AM
Turnover of just £1.5million, losses of nearly £900k without even paying out to creditors, awful reputation in the industry... sounds like you've got your work cut out Jason! Can't imagine what the actual outstanding creditors amount is.. £2 million plus??
I think it should be “their reputation is excellently known”. Crash 'n burn I'd say!