Sit-up Limited, the broadcaster behind Price Drop and Bid TV has entered into administration following a decline in sales on the two channels.
The channels have now been taken off the air and 229 employees, based in London, have been made redundant. Will Wright and Allan Graham from KPMG’s Restructuring practice have been appointed as joint administrators.
Will Wright, partner at KPMG and joint administrator, said: “It is really disappointing, given the hard efforts the company has made and the support of the majority of its creditors, that a satisfactory conclusion to the restructuring could not be reached. Despite the recent approval of a Company Voluntary Arrangement agreement with creditors, a significant and unexpected fall in sales over the course of the last month meant that the company was simply unable to continue to trade.
Launched in 2000 by former ITV Digital directors Ashley Faull and John Egan, Sit-up had been through a number of owners, including Virgin Media and Munich-based Aurelius, the company that owns Germany’s RTL Shop. in December 2013 Sit-Up was acquired by restructuring specialists Tnui Capital.
In a move widely thought to be about reducing Freeview carriage costs, bid and price drop moved “multiplexes” on the week commencing 31st March, meaning they were being broadcast on new frequencies. Viewers needed to retune to keep watching. But Price Drop moved to a digital multiplex that has limited UK coverage and can only be received on newer TVs, set-top-boxes or PVRs that can decode “Freeview HD” signals, despite the channel only being in standard definition.
Bid TV had been off-air in Wales for several weeks in advance of the frequency change; the frequency change meant that most of Wales gained Bid TV until the 17th April, but lost Price Drop (as the digital multiplex that carried Price Drop was only being broadcast in Wales from the Wenvoe [SE Wales] transmitter. )
“The small number of affected customers who have purchased items from sit-up limited within the last few days are advised to refer to the company website, which will be updated with more information in the coming days.”