Administrators sell Pack Media assets
ADMINISTRATORS handling the CD and DVD reseller Pack Media say they have sold the business and assets.
In a statement Cowgill Holloway said the assets were sold shortly after their appointment on April 15. The identity of the buyer was not given.
The business, which traded as Zumu from premises in Cheshire, encouraged people to send in unwanted CDs and DVDs in return for cash. Zumu would then sell them on and promised to recycle items no one wanted.
It was launched in the UK a year ago by Neil Ouzman who said at the time he was investing in a 55,000 sq ft processing facility in Leyland and a head office in Congleton.
Cowgill Holloway said the company’s problems started when it lost one of its sources of funding. It was courting an external investor but talks broke down.
Administrator Jason Elliott said: “The director explored potential refinancing options and additional equity for the business. Earlier this year he had received an offer from an investor but unfortunately negotiations broke down and the offer was withdrawn.
“In view of the financial position of the company and withdrawal of that equity offer, the director was left with no choice but to appoint administrators. Fortunately, a quick sale maximised asset realisations for the benefit of the company’s creditors as a whole.”
