Online tech retailer enters administration and ceases trading

Box Limited, an online tech and gaming retailer based in the West Midlands, has fallen into administration and ceased trading. The majority of the Tamworth-based company’s 100-plus workforce were made redundant upon the appointment of Michael Lennon and Mark Blackman of Kroll as joint administrators on January 19.

The company, an online retailer of gaming and technology-related products including laptops and bespoke gaming computers, had been trading for around 27 years. In its last available accounts at Companies House, for the period from October 31 2020 to March 31 2022, the company reported turnover of £139.5 million, but fell to a pre-tax loss of £2.3 million.

Prior to its administration, the company was reported to have annual turnover of around £76 million. However, according to administrators, the firm had experienced financial difficulties and was unable to continue trading in its present form.

Trading operations have ceased during the administration process, with the majority of staff made redundant and a small number retained to assist in an orderly wind-down of the company.

In a statement, joint administrator Michael Lennon said: "The company has faced financial difficulties due to peak trading over the Christmas period being below forecast expectations. This led to immediate liquidity challenges which could not be remedied in the short term.”

"Unfortunately, overall trading was not strong enough for the business to continue in its present format. Our immediate priority is to provide support to all the employees impacted by the administration."

In the company’s accounts for the period ending March 31 2022, its total assets were valued at around £29.1 million, with total equity standing at approximately £6.7 million.

UPDATE
Five Tech Ltd has acquired the intellectual property assets - as well as other assets - from the Administrators of Box Limited. As part of the acquisition, Five Tech Ltd will relaunch the popular online technology store, www.box.co.uk, under its own brand. Five Tech has also been able to offer positions to a number of the Box team who were made redundant when it entered Administration.

Five Tech were assisted in the acquisition by international law firm, Trowers & Hamlins. Martyn Kolankiewicz, Trowers' Partner, said: "We are delighted to have had the opportunity to work with Five Tech on this acquisition and structuring of the Box's online platform and intellectual property assets in what was a fast moving and complex deal. We wish Asad and his team every success in relaunching Box.co.uk as a leading online tech retailer in the UK market."

Asad Hussain, of behalf of the board of Five Tech Ltd, said: “The Trowers team provided excellent advice and support throughout the transaction and we are excited about the possibilities this acquisition brings. Box.co.uk has a huge brand and a loyal customer base, and we are committed to continuing its legacy while introducing new innovations.”

The acquisition was spearheaded by Corporate Restructuring Partner Martyn Kolankiewicz who received support from a dedicated team at Trowers including Insolvency Partners, Navinder Grover and Katie Farmer.

Read about how sectors such as retail are suffering as a result of low consumer confidence, leading to rising insolvency rates

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