Auctionworld under the hammer
Channel players show interest in buying teleshopping channel
Channel players have expressed an interest in acquiring part of satellite and cable teleshopping channel Auctionworld, which was forced into administration by a £450,000 Office of Communications (Ofcom) fine.
The firm sold digital cameras, plasma screens and computers, as well as other items, and had more than 300 employees. Insolvency specialist PKF was appointed last week as official administrator, and is looking to sell the business.
Nitin Joshi, partner at PKF, said: "We have had significant interest in the business because it has some impressive infrastructure technology and intellectual property. It would be attractive to channel players that are looking to acquire a shopping channel or that are keen merchandisers."
David Atherton, managing director of online reseller dabs.com, said: "If it has anything of value to us that fits in with our strategy and it's for sale at the right price, then we are very interested. However, I think we would look at cherry-picking assets rather than a full-scale regeneration plan."
Auctionworld was the subject of a high-profile investigation by Ofcom earlier this month following an "unprecedented number of complaints" received by the government watchdog.
According to the Ofcom report, Auctionworld was guilty of "severely inadequate failures in customer services, specifically inadequate arrangements to handle enquiries and delays in deliveries of goods".
Joshi said the 27,000 members of the public who are creditors are PKF's "main priority".
"We are working extremely hard to find the best solution for all of them. However it is unlikely that all the money owed to creditors will be repaid in full from the assets of the company," he said.