UK-based distributor Target Entertainment has been put into administration by its owners Metrodome.
TBIvision broke the story earlier this month that Target had been put up for sale and this afternoon Metrodome said it was putting the company into administration.
The Board of Metrodome Group plc announces that it has taken the difficult decision that Metrodome can no longer continue to provide support to its loss making subsidiary Target,” Metrodome said in a statement.
It added: “Given the tougher than expected trading conditions for Target, as highlighted in the trading update on 21 December 2011, the Board believes there is little prospect of Target returning to profitability in the near future and, together with its advisers, has conducted a thorough review of the available options for Target.”
BDO has been appointed as the administrator of Target with effect from today.
Metrodome said that its other trading divisions, Metrodome Distribution and Hollywood Classics, are unaffected and continue to trade as normal.
Mark Webster, executive chairman of Metrodome Group told investors in December: “Many of [Target’s] customers are either not buying product at all or delaying decisions on any new purchases which has led to a worse than expected financial performance.”