Listed entertainment company to call in administrators

A York attractions design, production and fit-out business has confirmed it is to appoint administrators.

Paragon Entertainment said it had been in discussion with its lending bank, HSBC, as it does not have enough cash to continue to trade and to pay its creditors in time.

The business has also suspended trading of its shares and its Chief Executive, Damien Latham, has resigned. Latham started as CEO three weeks ago, on June 4.  Its previous CEO, John Dobson, left the company in February, after which the board appointed Mark Pyrah, Paragon’s founder, as interim CEO.

Paragon Entertainment said: “In the light of the above and the operational and financial uncertainty which the company now faces, and in order to protect both shareholders and creditors, the board has taken the decision to place the company into administration and intends to appoint administrators shortly with the purpose of seeking buyers for the company’s business and assets on a going concern basis.

“As a result, the board announces it has requested a suspension of trading in its shares on AIM with effect from 2pm on 20 June 2019. Damien Latham, CEO of the company, has resigned from the business with immediate effect.”

Paragon Entertainment is the holding company of Paragon Creative, which designs and builds visitor attractions and experiences. Just last week, the firm warned its losses would further deepen. The AIM-listed firm said last Tuesday that it expected to report pre-tax losses of £3m for the year ending 31 December 2018.

At the time, Paragon Entertainment said: “During the Audit of the FY 2018 financial statements it has become apparent that following the adoption of IFRS 15, some revenue (and therefore the profits associated with that revenue) that was previously expected to be recognisable in FY 2018 will now be recognised in FY 2019.

“This mainly relates to a shift in the programme and therefore revenue/profit recognition regarding the Company’s Kidzania Abu Dhabi project.”

The firm added: “The Board continues to look at opportunities to reduce the cost base of the Company with a view to reducing long term overheads and to increase future profitability.” 

Latham was appointed CEO after working in the Leisure and Entertainment industry for the last 25 year, including Center Parcs and Majid Al Futtaim in Dubai. 

Paragon’s work includes entertainment projects for museums, heritage centres, zoos and aquariums, theme parks and visitor attractions, science centres, retailers, food and beverage outlets.

Its more recent projects have been Land of the Lions at London Zoo, The Rolling Stones Exhibitionism at the Saatchi Gallery, Motiongate theme park in Dubai, Kidzania in London, The Olympic Museum in Lausanne, the Titanic in Belfast, and Wallace and Gromit Thrillomatic at Blackpool Pleasure Beach.

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