Quickflix sold for $1.3m to US entrepreneur

2016-04-26_1210

Struggling streaming service Quickflix has been sold to US-owned Karma Media Holdings for $1.3m.

Los Angeles entrepreneur Erik Pence will pay unsecured creditors up to 21.5ยข in the dollar. He plans to retain 24 employees and pay all entitlements owed to former employees.

The Perth based streaming and subscription service listed on the Australian stock exchange in 2005 and was one of the first subscription streaming services in Australia. But it ran into trouble when other streaming services, such as Netflix, launched in Australia.

Amongst creditors of the company are Madman Entertainment, Icon Film Distribution, Regency Media and Twentieth Century Fox Home Entertainment.

Quickflix also blamed Nine and Fairfax Media’s joint venture, Stan, for demanding $4 million in cash, or cash plus all its customers.

Quickflix has been in administration by Deloitte since May this year. Despite the sale the company is likely to wind up owing $4.166m.

News of the sale came on the same day as Foxtel / Seven joint venture announced it would close its service.

Source: Fairfax, Mumbrella

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