Quickflix falls into administration

Cottesloe-based online streaming service provider Quickflix has gone into voluntary administration, blaming rival Stan Entertainment for its need to take the decision.

Quickflix announced today it had appointed partners from Ferrier Hodgson as administrators after failing to raise much-needed capital.

In a statement, the company said $11.7 million worth of redeemable preference shares held by Nine Entertainment-owned Stan, which were acquired from HBO in 2014, were preventing Quickflix from raising capital.

“Despite Quickflix being the first to the streaming market and holding a leadership position in 2014, ongoing growth has required capital for continued investment in content and marketing,” it said.

“Neither Nine nor Stan have ever participated in any capital raisings to assist Quickflix’s growth and its ability to raise capital from any source has been constrained by the redeemable preference shares.”

Quickflix said Stan would only consider restructuring the RPS if Quickflix either paid Stan $4 million in cash, or paid $1.25 million in cash and transferred all of its streaming customers over to Stan.

“Neither alternative presents a viable option for Quickflix,” the company said.

“As these negotiations with Stan have not been successful and the majority of potential new funders have specified the restructure of the RPA as a condition of providing capital, the company has no other realistic alternative but to appoint voluntary administrators.”

Earlier this month, Quickflix announced a 15 per cent cut to its staff numbers as part of plans to save $1 million per annum.

Quickflix shares have been suspended from trade since August last year.