31 May 2012
Media Corporation Plc ("Media Corp" or the "Group")
Purple Lounge Trading Update
Following the acquisition of Intabet Limited, announced on 16 May 2012, Adam Fraser-Harris and Phil Jackson were appointed Interim CEO and Chairman respectively immediately following the departure of Justin Drummond (Previous Executive Chairman) and Sara Vincent (Previous MD of Purple Lounge and Interim CEO of Media Corporation). Since their appointment, Adam and Phil have been conducting a strategic and financial review of the enlarged Group.
It has become clear during the review that the financial and trading position of the Purple Lounge division is no longer tenable due to historic operational and financial failings within the business. Accordingly, it is with regret that the Board announces that it has made all of the staff within that division redundant and will be instructing lawyers to file the relevant documentation to put the relevant companies into liquidation.
The Board will specifically request that the appointed liquidators look into the financial arrangements within the Purple Lounge group of companies and to review the position as to player funds.
The Board regrets any corporate failings in the past and seeks to assure shareholders that it is exploring routes to try, in some way, to mitigate the expected player losses, though this is against a background where the Group has loaned well over £1m to the division since its acquisition in October 2009. The Board does not believe that the Group will incur any further liabilities in respect of Purple Lounge over and above the realisation of the above loan.
Notwithstanding the difficult decision it has made, the Board believes that it can put the poor trading of Purple Lounge behind it and will be working to bring the Group back to profitability, as quickly as possible.
Further announcements will be made as and when appropriate.
|Contacts: Media Corporation Plc||Tel: +44 20 7618 9000|
|Phil Jackson – Chairman|
|Adam Fraser-Harris – Interim CEO|
|Northland Capital Partners Limited||Tel: + 44 20 7796 8800|
|Luke Cairns / Rod Venables (Nominated Adviser)|
|Katie Shelton (Joint Broker)|
|XCAP Securities||Tel: + 44 207 101 7070|
|Jon Bellis / Karen Kelly (Joint Broker)|
|Bishopsgate Communications||Tel: + 44 20 7562 3350|