The UK PC retailer BOX has entered administration
Box.co.uk has officially ceases operations
One of the UK’s largest PC components retailers, BOX, has officially entered administration, and the business has officially ceased its operations. Right now, the business’ online store remains online. That said, purchases cannot be made though the website. Attempting to purchase items on the website will kick users to the website’s main page.
BOX’s closure explains why we have not seen stock of any recently launched graphics cards on the company’s website. Below is the notice that administrators have placed on the company’s website.
Please note that Michael Lennon and Mark Blackman of Kroll Advisory Ltd were appointed Joint Administrators of Box Ltd on 19 January 2024. The business has ceased to trade and all enquiries should be directed to [email protected].
If you have made a deposit for or paid for goods or services by credit or debit card that have not yet been received, you may be able to get your money back by claiming a refund from your card issuer. Please contact your card issuer as soon as you can if this may apply to you.
The Joint Administrators act as agents of the Company and without personal liability and both are licensed by the Insolvency Practitioners Association.
Box was established 27 years ago, and was acquired by the Tactus Group in 2022 for £100 million. The Tactus Group also owns Chillblash, CCL, MENDIT, GEO, CODA, and BIST Group.
Before entering administration, the company hasted an annual turnover of £76 million and a workforce of over 100 employees. BOX’s joint administrators plan to collaborate with some remaining staff to wind down the company. Some companies to re-emerge after administration. This is unlikely to be the case for BOX.
Below is what Kroll’s Michael Lennon had to say about Box’s administration to The Business Desk.
The Company [Box] has faced financial difficulties, due to peak trading over the Christmas period being below forecast expectations. This led to immediate liquidity challenges which could not be remedied in the short term.
Unfortunately, overall trading was not strong enough for the business to continue in its present format. Our immediate priority is to provide support to all the employees impacted by the Administration.
BOX has legal issues
A statement from a Tactus spokesperson has confirmed that they are in a legal battle with five of BOX’s former directors. Looking further into this battle, we can confirm that Tactus believes that BOX’s directors overinflated the company’s value prior to its buyout. This resulted in Tactus overpaying for BOX when they acqired the company in 2022.
We are extremely disappointed that we have had to take the necessary steps to place Box into administration. There is a substantial ongoing legal claim which has been issued by Tactus Group against five former directors of Box and whilst this claim is ongoing, it is inappropriate to comment further. Despite the tireless work of its talented staff, these challenges proved unsurmountable.
Our heart goes out to all of the staff who are affected by the closure of BOX, and the consumers who have unfulfilled orders. We are sad to see a major PC components retailer enter administration, and we hope that there is a way that the company can survive this process.
You can join the discussion on BOX.co.uk’s closure on the OC3D Forums.
