COVID-19-related cashflow issues prompt pre-pack sale of The Hook
Posted on May 1, 2020 by Jonathan Symcox
Redundancies likely at social marketing and media business with 14 million followers after it is snapped up by listed social video group
A social marketing and media business with 14 million followers has been acquired via a pre-pack administration which is likely to result in redundancies.
Launched in 2014, The Hook Group has grown rapidly into one of the largest youth-focused media groups globally, partnering with industry-leading brands such as Samsung, Universal, Apple Music and Boohoo.com to create engaging content.
With over 14 million followers across social media, The Hook Group’s entertainment and comedy channel, The Hook, is focused on popular culture.
Listed social video group Brave Bison has acquired The Hook channel and related intellectual property, including a number of websites and media channels on Instagram, Facebook and TikTok.
Six members of staff have transferred across. Administrator KPMG said redundancies were likely among the remaining 19 staff.
Steve Absolom, partner at KPMG and joint administrator, said: “The Hook Group had started to experience significant cashflow issues during the first quarter of the year which were then compounded by the impact of the COVID-19 pandemic, prompting a number of clients to suspend advertising and marketing spend.
“At a time when staying connected feels more important than ever, we are therefore pleased to have been able to secure a sale to Brave Bison.
“While it is pleasing to have been able to preserve a number of jobs as part of the transaction, sadly it has not been possible to find a solution which involved a transfer for all of the Hook Group’s employees.
“Although we have retained a small number of people to help complete outstanding projects, the remaining employees are likely to be made redundant.
“Our immediate priority is to work closely with those affected and provide them with all the support and assistance they need during this difficult time.”
Kate Burns, CEO of Brave Bison, commented: “Brave Bison creates, manages and distributes engaging content to a global audience.
“The acquisition of The Hook assets is an important step in that strategy, massively increasing our social footprint across next-generation platforms such as TikTok and Instagram.
“Combined with Brave Bison’s existing audience on YouTube, Facebook and Snapchat, it will help drive stronger results for our brand, creator and platform partners.”