Music dies at rock titles
More than 70 laid off as magazine firm collapses
Most of the 80 staff, of whom 31 worked in High Blantyre and 49 in London, have been made redundant.
Team Rock’s range of titles and brands includes Classic Rock, Metal Hammer, Prog, the Golden Gods Awards and the Classic Rock Awards.
Joint administrators Tom MacLennan, Iain Fraser and Jason Baker, are partners at FRP Advisory which is now seeking buyers for the titles and other assets of the business.
Team Rock was founded in 2012 and the business acquired the Classic Rock, Prog and Metal Hammer magazines from Future Publishing in 2013.
It has built a substantial subscriber base and profile across the world, with the website attracting in excess of three million hits per month.
An internet radio station reaches a large online audience. The company also owns an extensive archive of video, radio, images and magazines.
Turnover was in excess of £6 million. The business, however, had traded at a loss for a significant time, with consequent constraints on the cash position.
Cost-cutting measures were implemented and despite the best efforts of the directors to seek additional investment or a purchaser for the business, no deal could be completed, leaving the company with no viable option other than to enter administration and to immediately cease trading.
The business has now ceased trading and 73 staff have been made redundant with immediate effect (46 in London; 27 in High Blantyre).
Tom MacLennan, joint administrator and partner at FRP Advisory said: “The company explored every option to secure the long-term future of the business, however the constraints on the cash position of the business were such that administration was the only viable option.”
Seven staff will be retained in the short term, three in London and four in High Blantyre, to assist the administrators with magazine publishing, website maintenance and other matters.
“Our priority is to work closely with all agencies and services to ensure employees receive every support and assistance at this very difficult time,” said Mr MacLennan.