‘Perfect storm’ of problems forces Brand New Media into administration and out of TV4ME
One of Australia’s biggest branded content production houses Brand New Media has called in administrators after being hit by what it has described as a “perfect storm” of issues across its business interests.
The company, founded in 2001 by CEO Perry Smith was responsible for branded TV shows for some of Australia’s biggest brands and had been a joint-venture partner on TV channels TV4ME and HealthyMETV with Network Seven and Prime.
However Mumbrella understands the contracts for those channels were terminated at midnight last night after the company called in administrators Dean-Willcocks Advisory, with six staff made redundant.
Managing director David Borean told Mumbrella that while the company had a number of successful ventures it had been dragged down by a “couple of the lesser performing parts of the business”.
Oh dear. This has been cooking for awhile. Mumbrella: did you not chase CEO Perry Smith for a quote?
Why is anyone surprised? Remember Destra… The same mob, same disaster.
Decision was made to bring in the administrators 24 hours prior to payroll and super being paid. means the staff are all out of pocket for last 4 weeks work, annual leave, and 4 months of super.
Yeah, what Heather said. Chase up Perry for a quote! While you’re at it, ask him about what happened last time with no redundancies at Destra…
Sorry for the staff, Perry has been a pioneer in branded content but once you let the private equity fox in the hen house your under big pressure. Some of the senior team are light weights particularly in finance.
Oh dear again. Well, creditors, since it is Voluntary Administration I suggest you all get together and form a creditors committee and vote for immediate liquidation and lack of faith in the Directors. Living a long drawn out VA period only benefit$ the ATO and the lawyers. Perhaps you could raid some of the Directors wardrobe and sell their high-end brand-name coats to raise a slush fund to try and increase the cents in the dollar.
To burn through all pre existing cash and a $13M raise inside 18 months is a bit more than a “perfect storm”. Perhaps it was poor acquisitions, excessive spending, and very overpaid yet equally under skilled directors?
Bland and boring video content that has obviously not delivered the results they once claimed. What a screw up. A team of board members who overspent and [Edited under Mumbrella’s moderation policy] while not bringing any innovation or value.
Looks like Simon Joyce got out at the right time.
would like to say a big thankyou for shutting down 4me channel 64 as your first viable option (sarcastic). once again regional viewers are the first to lose when 4me channel 74 still airs as normal everywhere else ? if your going to shut a tv station down shut the whole thing not just give a select few the option of still viewing it’s unfair, also some have ishop tv as a replacement and others like me just have this service is no longer available on the screen ? I’m very disappointed I can no longer watch one of my favourite shows on 4me channel 64 and what makes it worse is I know others can still on channel 74 ?
Not the most ethical of companies.
BNM: Same old story, Brand New Mess
I think a number of people saw detected this on the storm radar a very long time ago.
Damn, was getting into “elite tactical unit” looks l’ll have to download the last few episodes.(can’t think of anything else on tv4me that I watched)
It’s a great shame and my condolences to all concerned. Igoo has been producing branded content for 16 years now and I never could understand the BNM business model.
Has Perry had anything to say on this?