Electronic screen supplier Rhino Media Group (RMG) has confirmed to Better Retailing that it will go into liquidation in the next 90 days unless it secures significant external funding.
The news comes after Better Retailing reported in October that the company was on the verge of collapse, leaving retailers in thousands of pounds worth of debt.
At the time, it was dismissed as “a rumour” – however, a spokesperson for the company this week told Better Retailing: “I’ve spoken to our creditors and they’ve agreed to work with us for the next 90 days. I’ve also spoken to an insolvency practitioner, who said this is the time limit we’ve got.”
When asked if the company would go into liquidation if funding was not secured, the spokesperson said: “Yes, there absolutely is potential.”
The company explained it was “working towards securing series A [venture capital] funding, as well as crowd funding”.
They added that RMG “hadn’t had any sales or trading for the past six weeks”. Sources also revealed to Better Retailing that the company “let go” all of its employees and contractors in the past fortnight.
At the start of the year, RMG took on the customers of collapsed screen supplier The Shoppers Network.
Under the agreements, store owners paid an average £255-£300 per month to lease screens under contract with various third-party financial providers.
These costs were offset by monthly airtime payments by RMG, but the company confirmed it was no longer able to make these scheduled payments due to an inability to generate sufficient interest from advertisers.
Affected shop owners are understood to be taking the case to the Financial Conduct Authority and the government’s small business commissioner.