After several recent redundancies and a failed attempt to attract new investment cash, the plug has been pulled on the business, it is reported.
Sky News has reported that Boomin has called in liquidators just a week after the firm made a number of employees redundant.
It is reported an accountancy firm, BK Plus, has been brought in to handle the firm’s liquidation after it failed to find the £6 million to keep the enterprise afloat. Boomin is operated by Birmingham-based PD Innovations Ltd.
Several investors may have had their fingers burned by the demise of Boomin including Foxtons, DN Capital and Channel 4, all of whom invested directly or indirectly in the company’s startup.
Boomin’s 65 employees were notified about the plan to put it into liquidation on Monday afternoon, suggesting the liquidation is a voluntary arrangement designed to protect creditors.
ECONOMIC SLOWDOWN
Co-founder Michael Bruce has released a statement to Sky saying: “Our move to a fee-paying, revenue-generating model from April 2022 coincided with the start of the economic slowdown and the drying up of funding.
“In line with most tech company scale-ups we overhauled our business model to reflect the new market conditions, sharpening our focus on our key differentiated products and improving efficiencies to bring forward the point where we reach breakeven and generate positive cashflow.”
Signs of trouble at Boomin have been rumoured for weeks, and one insider tells The Neg it’s ‘all gone quiet recently’ at its HQ.
But the news of a liquidation will be a surprise to many – Bruce raised new investment cash this Spring including an injection of money from his own personal fortune.
Andrew Stanton, who has been a long-time Boomin watcher, tells The Neg that while a tech-savvy public were ready to embrace Boomin’s online tools, agents were more reluctant to take the plunge. The most recent communications from the firm revealed that around 8,000 agencies had signed up to use the platform, but it was not clear how many were prepared to pay for its services despite an initial tranche of high-profile ‘payers’.
Source : The Negotiator
