Quickflix appoints administrators after negotiations with Stan fail

EMBATTLED media company Quickflix has appointed voluntary administrators after it failed to clinch a deal with rival Stan.

Quickflix boss Stephen Langsford. Online movie streaming business Quickflix is celebrating the 10th anniversary of its inception.Pic John Feder

EMBATTLED media company Quickflix has appointed voluntary administrators after it fails to clinch a deal with rival, and investor, Stan.

Quickflix founder Stephen Langsford, who once famously invited Netflix to come “through the front door” to compete in Australia, today issued a statement saying Ferrier Hodgson had been appointed as administrators.

Mr Langsford said the move comes after failing to secure a deal with Stan, owned by Fairfax Media and Nine Entertainment.

Stan, in 2014, acquired $11.7 million of redeemable preference shares in Quicklix which had issued to HBO as part of a $10 million investment.

Mr Langsford said those shares were a stumbling block as it was seeking to restructure its business.

He said Stan offered two possible resolutions: for Quickflix to pay $4 million in cash or to hand over $1.25 million in cash plus all of its streaming customers.

“Neither alternative presents a viable option for Quickflix,” Mr Langsford said in the statement to the Australian Stock Exchange.

“In the first instance Quickflix does not have the funds to make payments to Stan, nor does the company believe it can raise funds from investors for that purpose.

“Neither alternative leaves Quickflix in a position to fund its unsecured creditors nor with capital necessary to take the business forward.”

“The company has no other realistic alternative but to appoint voluntary administrators.”

Mr Lansford said Quickflix would continue to operate with “business as usual” during the administration.

The administrators have said they had started “an urgent analysis” of Quickflix’s position and would explore a sale or restructure.

Originally published as Quickflix appoints administrators after negotiations with Stan fail