Local streaming business Quickflix has collapsed into voluntary administration.
The ASX-listed company announced today partners from Ferrier Hodgson have been appointed as the company’s external managers.
The appointment comes almost a year after Quickflix received a $775,000 lifeline from investors.
In a statement to the Australian Securities Exchange, Quickflix said it has been unable to raise new capital due to the existence of redeemable preference shares held by Nine Entertainment and Fairfax’s streaming giant Stan.
Recently, Quickflix has sought to renegotiate with Stan, but Stan said it would only agree to Quicklfix’s terms if it is paid $4 million in cash – or $1.25 million and the transfer of all of Quickflix’s remaining customers.
“Neither alternative presents a viable option for Quickflix,” the company told the market.
“In the first instance, Quickflix does not have the funds to make payments to Stan, nor does the company believe it can raise funds from investors for that purpose … the company has no other realistic alternative but to appoint voluntary administrators.”
Quickflix will continue to trade while in administration, with management seeking to restructure the business under a Deed of Company Arrangement.