Confidential Advice Line: 0800 063 9221

Online mobile music store bought out of administration


Following the administration of North West based mobile entertainment store Chilli Music Ltd, its business and assets have been sold to Chilli Digital Europe Ltd, securing the future of the business and six jobs. The deal was negotiated by joint administrator Julian Pitts of Begbies Traynor in Leeds who was advised by Helen Bates of Leeds law firm Clarion.

Established in 2008, the Kendal business operates a number of domain names all of which are included in the sale, including the official mobile site for the 2012 X Factor Live Tour. One of the UK’s largest independent down load sites, the Mobile Chilli brand is also well established in Ireland, South Africa and Australia. The site has grown to offer over four million downloadable pieces of content including music, ringtones, games and music videos direct to android mobile phones and PCs.

Julian Pitts and Bob Maxwell were appointed as joint administrators to Chilli Music Ltd on 29 June. The business was immediately acquired by Chilli Digital Europe Ltd.

Mr Pitts of Begbies Traynor commented: “Over the last four years, Chilli Music has become one of the leading downloadable entertainment sites in the UK and beyond. By concluding this sale so quickly, we have not only preserved the value of the brand and the future of the staff, but also brought about an improved return for creditors.”

Helen Bates of Clarion commented: “There was a real risk that without prompt action by the administrators, damage to the brand would result in the business losing all of its value, making any onward sale unlikely. We were pleased to be able to deal with the matter so swiftly, with the company being placed into administration and the sale completing within just two days of receiving the initial instruction.”


About the author

Julian Pitts

Regional Managing Partner

Meet our Team of Experts

Following graduation from the University of Hull, Julian qualified as a Chartered Accountant with Coopers & Lybrand in Leeds. After a short time with Baker Tilly, in 1989, together with David Wilson, he established Wilson Pitts, a specialist independent practice dealing with all aspects of insolvency and corporate recovery work. In 2006, the Wilson Pitts practice was acquired by Begbies Traynor where Julian is now the Joint Regional Managing Partner for the North-East region.

48 Regional UK Offices

Find your local Begbies Traynor office and speak to an adviser today.

Find your Local Office
0800 063 9221

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
0800 464 0871

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
0161 837 1700

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
Advice for businesses on EBTs after HMRC Supreme Court victory
Begbies Traynor currently advising numerous businesses
HMRC sends out follower notices to reclaim tax lost to Employee Benefit Trusts
Find out more →
 
Open Banking to Reshape the Alternative Finance Sector
CMA mandates the adoption of Open Banking by early 2018
Will see alternative lenders competing on a level playing field with dominant banks
Read more →
 
Join thousands of professionals by signing up for our updates
Analysis and Opinion from our Partners
Top Industry News
Register Now →
 

Advice you can trust

We are accredited by the following industry leading organisations

Insolvency Practitioners Association Institute of Chartered Accountants in England and Wales R3: Association of Business Recovery Professionals ICAEW Business Advice Service Turnaround Management Association ACCA (the Association of Chartered Certified Accountants) ICAS | The Institute of Chartered Accountants of Scotland

Contact the Begbies Traynor team

or Find your Nearest Office
Processing...