Jobs saved as new buyers found for digital store

Published at 10:40, Monday, 16 July 2012

A Cumbrian online digital store has been bought from administrators – saving six jobs and hopefully securing its future in the county.

The Kendal-based Chilli Music went into administration last month. The company operated a string of websites offering content for sale - including the 2012 X Factor Live site.

Now Administrators Begbies Traynor have agreed a deal to sell the company to Chilli Digital Europe. None of the Chilli Music directors are connected to the new business.

Julian Pitts, of Begbies Traynor and administrator to Chilli Music, said: "Over the last four years, Chilli Music has become one of the leading downloadable entertainment sites in the UK and beyond.

"By concluding this sale so quickly, we have not only preserved the value of the brand and the future of the staff, but also brought about an improved return for creditors."

Tim Newmarch, a director of the new Chilli Digital Europe company and also head of content and director at IMImobile, told in-cumbria.com: “We were a supplier of Chilli and saw this as an opportunity to get involved in with supplying direct to the consumer and build on the success story.

“Chilli had built up a good brand and established a good network with the major labels so there was undoubted value there.”

He added: “Chilli Digital Europe will be run by the existing Chilli staff and there will be no changes Everything is under review, but we are committed to supporting Chilli and the offices and staff will operate from Cumbria.”

Published by http://www.in-cumbria.com