Peerless Digital Imaging Limited - Case Update

The joint administrators of a 45-year old special visual effects business have revealed the reasons behind the company’s collapse and the details of its pre-packaged sale.

London-based Peerless Digital Imaging Limited entered administration for the second time in February of this year. The company had previously entered administration in 2015, which concluded with a rescue package which enabled the business to relaunch operations with the support of creditors.

This time around, the company entered administration due to the knock-on effects of the Covid-19 pandemic and the recent screen actors strike. This led to significant cash flow issues and an inability to settle historic liabilities.

After a period of pre-appointment marketing, joint administrators John Dickinson and Joseph Colley of CBW Recovery completed a pre-pack sale to PLSVFX Limited. The consideration was £130,000, which included all 15 employees under TUPE. As part of the sale, the company’s director also agreed to assign a £1.1 million personal claim against Peerless Camera Company Limited (in liquidation) to the administrators in partial settlement of his overdrawn loan account.

The administrators’ team was led by Jonathan Reason (Associate Director). The administrators were advised by James Roberts and Andy Lynch of Francis, Wilks & Jones (legal) and Axia Valuation Services (marketing). Their proposals can be found HERE.