End of the line for U.K. Golds
Company may have up to $12 million in debtLONDON -- S Golds & Sons, the U.K.'s largest and longest-serving independent home entertainment wholesaler, will go into administration Monday.
CEO Garry Elwood told THR that all 150 employees were issued redundancy notices on Friday during a company meeting after the company's bank, the Royal Bank of Scotland, declined to extend any more finance to fund a rescue plan.
Golds, which boasts relationships with Hollywood studios including Warner Bros., Universal and Disney, is believed to have debts of up to 6 million pounds ($12 million), according to industry sources.
"It was just awful, one of the worst things I have ever had to do," Elwood said of the meeting at which he told employees that their jobs were lost.
Elwood, who, like many of the staff has been at the Leyton-based firm most of his career, said that BDO Stoy Hayward Ltd., which has been advising the bank, is likely to be appointed as administrator.
The announcement follows the failure of a series of negotiations between the Golds' bankers and several potential buyers thought to include Ireland's DDC Plc. and rival Changeover.