Australian music streaming service Guvera has placed two of its subsidiaries, Guvera Australia and Guv Services, into administration as the business attempts to stay afloat after a failed initial public offering (IPO).
The Australian Financial Review is reporting that the move is aimed at getting its monthly cash expenditure down to about $1.6 million, with the company also slashing roughly 60 jobs as another way to cut costs.
Guvera yesterday announced that Deloitte Restructuring Services partners Neil Cussen and Enzio Sentatore had been appointed as voluntary administrators of the two subsidiaries with Guvera Limited continuing to trade.
Deloitte has also been tasked with leading an international restructure of the business, with the streaming service announcing that it was cutting its international offering from 20 countries to 10.
The business explained that it would still operate in Australia, as well as focusing on high-growth and emerging markets, such as India and Indonesia.
Earlier this month, Guvera revealed that it was commencing capital raising for its IPO on the Australian Stock Exchange. At the time the company was aiming to raise an additional $100 million for its IPO, however the ASX blocked its float, with its level of debt, losses and low revenue causing many to take concern with the listing. In the first six months of this financial year the company lost $56 million, The AFR notes.
To gain traction in the crowded Australian streaming market the brand did several sponsorships including of Nine's The Voice and The Australian Open.
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