Like its fallen competitors, the company had been experiencing financial difficulties since the end of the dotcom boom. The company, which once had a market value of over £2bn, called in the administrators yesterday in the face of unsustainable losses and mounting debts.
The future began looking grim for Affinity when two of its major trading companies – Affinity Wireless Ltd. and Hurricaneseye – entered into administration. The company’s unaudited figures in the nine months to 30 September 2002 revealed nearly £9m in losses. Aside from its operations in the UK, it also has operations in other countries including Australia and the Netherlands.
Begbies Traynor partners Vivian Bairstow and Nick Hood, who were appointed administrators, have vowed to save jobs where possible and to realise the value of company assets on behalf of its creditors.
Bairstow said: ‘Unfortunately creditors must be made aware that there are precious few capital assets left in the company and a great deal of debt. My priorities are to save as many jobs as I can worldwide and to get the best deal possible for unsecured creditors.’
Affinity is the second former dotcom to announce administration proceedings this week. On Monday database technology company Upmystreet.com said it had called in administrators at RSM Robson Rhodes after succumbing to financial pressures.
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