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73 jobs lost as music media firm TeamRock collapses
By Chris Cooke | Published on Tuesday 20 December 2016
Music media firm TeamRock fell into administration yesterday putting 73 people out of work just as the Christmas break beckoned. The firm’s administrators say that the radio and magazine company had traded at a loss “for a significant period of time, with consequent constraints on the cash position”.
TeamRock was founded in 2012, though first really appeared the music industry’s radar the following year when it acquired the Metal Hammer and Classic Rock titles from Future Publishing. With its founders John Myers and Billy Anderson both coming from a radio background, it was no surprise when TeamRock then announced a radio station alongside the magazines. The various outlets were then brought together in one online hub trading under the TeamRock name.
The company went through a period of growth, in terms of headcount and output, including launching new titles, though last year it took its radio service off the DAB digital radio network. Its radio programmes continued to be available online though, with plans for global expansion of that side of the business.
Despite all that, TeamRock – like many music media companies – seemingly struggled to monetise its sizeable online audience; online being the key to long-term success in the music media domain as sales of print magazines decline pretty much across the board. A move into ticketing via an alliance with The Ticket Factory was announced in August, but presumably that was too little too late in terms of generating new revenue streams.
A total of 73 of the company’s 80 staff members were immediately laid off as the company went into administration yesterday. The remaining seven staff will be kept on in the short term to assist administrators in both of the company’s offices, one in London and one near Glasgow. Those administrators are hoping that a buyer can be found for some of TeamRock’s assets, with the long-standing magazine brands the company acquired from Future most likely to attract possible bidders.
Administrator FRP Advisory said that a number of cost-cutting measures had been implemented at the firm to try and improve its financial position, but those had not be sufficient, and management couldn’t find any new investment or a buyer for the business. This left the company “with no viable option other than to enter administration and to immediately cease trading”.
FRP Advisory’s Tom MacLennan 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. The administration presents an excellent opportunity to acquire high profile rock music titles, products and brands that have a substantial global following”.
On possible bidders for those assets, MacLennan continued: “The brands and assets could appeal to a music media business looking to expand its portfolio, or an entrepreneur that sees the potential for developing the brands”.
“The business has now ceased trading”, he concluded, confirming the immediate redundancies. “Given the financial situation of the company, unfortunately 73 staff have been made redundant with immediate effect. Seven staff will be retained in the short term 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”.
