Book recommendation site Lovereading has gone into administration a month after seeking a new buyer.
A spokesperson for the administrator IRL said the company would “trade as normal” whilst exploring restructuring plans which may include sale of the whole or parts of the business. The Bookseller understands that there are no current plans to make any of the eight staff redundant and there are already discussions with several interested parties.
Last month the business announced it was seeking a new buyer, to help "build the business to the next level”. But after a business review of the "various strategic options" to maximise value for its shareholders, it is seeking offers for the company.
It was hoped that further investment from a sale would have allowed its operations to be "scaled to an even larger audience" and "build the business to the next level".
However, a buyer has failed to materialise after the call was put out on 3rd May and today (13th June) a notice of administration has been circulated by the organisation’s co-founder and director Peter Crawshaw.
An IRL spokesperson said: “Lovereading Ltd continues to trade as normal whilst working with interested parties as part of the new restructuring plans that may include a sale of the whole, or parts of the business".
IRL director Kenneth Touhey told The Bookseller: "At the moment no member of staff has been made redundant. We continue to trade as normally as possible as we continue to talk to interested parties. We are supporting the staff as far as possible and they continue to be employed as we find a buyer.
"It is difficult to say how long it will take, that depends on the interest of said parties over the next few days and weeks. There is no time limit. We were only appointed on Friday morning. There have been expressions of interest prior to our appointment but none came to fruition."
He added: "We are presently in discussions with several parties [who have come forward since IRL’s appointment]. We would prefer to sell the whole business. We continue to take support from the company’s clients and suppliers at this point in time."
Formed in 2005 to "capitalise on emerging digital technologies", Lovereading helps publishers connect directly with book lovers and helps readers discover new books. The company's brands include lovereading.co.uk, lovereading4kids.co.uk and lovereading4schools.co.uk, which target book lovers, parents and schools.
All queries should be sent to the appointed administrator Kenneth Touhey of Insolvency and Recovery Ltd, Chatsworth House, 39 Chatsworth Rd , Worthing, BN11 1LY.