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|Leonard Curtis Business Solutions Group called in as Omnifone Ltd hits a low note|
|Monday, 09 May 2016|
Andrew Duncan and Neil Bennett, Directors of Leonard Curtis Business Solutions Group, were appointed joint administrators to London-based B2B cloud music platform provider Omnifone Ltd and its subsidiary Omnifone Group Ltd on 4 May 2016.
The B2B digital music firm will continue to trade as usual whilst the administrators seek a buyer for the company’s technology assets. 120 staff were employed by the company of which 50 core members have been retained to continue business operations whilst a buyer is sought.
Omnifone was founded in 2003 by Rob Lewis, Phil Sant and Mark Knight. Their first music product was cloud service MusicStation, which made its name powering Vodafone’s digital music service. Today, Omnifone powers global digital music services in 35 countries and has a licensed catalogue of 35 million tracks. Its customers include the world’s largest music providers: Spotify, Neil Young’s PonoMusic, Guvera, Rara and Sony.
In 2014, Omnifone was recognised by The Sunday Times Hiscox Tech Track 100 for the second time. The Track 100 league table ranks the UK’s private technology companies with the fastest-growing sales over the last three years. Omnifone achieved 122% compound annual growth rate in sales from 2010 to 2013, outpacing other companies in the league table with average growth of just 79%.
The business failed due to a combination of ongoing development and operating costs, the loss of and failure to pay by key customers, and the fact that it had exhausted the significant amounts of capital invested in it.
Andrew Duncan, Director at Leonard Curtis Business Solutions Group, says: “Administration was the most viable option as it allows Omnifone to continue to trade as usual whilst we market the technology assets for sale.
“There is a great deal of interest in Omnifone’s technology assets and their future potential and we are currently in discussions with household names within the music industry.”
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