57 jobs in the local area have been lost after Bath-based audiobook producer AudioGo went into administration.
The company suspended trading last week after announcing ‘recently discovered significant financial challenges’.
BDO LLP business restructuring partners, Mark Shaw and Tony Nygate were appointed joint administrators over AudioGO Limited yesterday.
In a statement, it is said that discussions were advanced with a number of potential financial buyers, trade buyers and investors for the UK business, but it was not ultimately possible to finalise a sale of the UK business as a going concern or to secure the investment needed.
The Bath company also announced the sale of its US arm of Blackstone Audio, another audiobook producer back to their founders. Blackstone was bought by AudioGO just ten months ago.
AudioGo was launched back in July 2010 when private investors bought out BBC Audiobooks, which was also based in Bath. BBC Worldwide owns a minority stake in the company.
Recent accounts show that AudioGo had increased their profits to £2.4million up to 31st March 2012, but their cash flow had dropped significantly from nearly £2million to just £350,000.
Mark Shaw, BDO business restructuring partner, said: “Significant accounting issues and the consequent working capital requirements at AudioGO led to it being insolvent. Unfortunately, there was no other option at this stage but to place the remaining UK business into administration, as no suitable buyer could be found.
“The administrators are taking all necessary steps to mitigate losses to customers and to maximise recoveries for the benefit of creditors.”