AIM-listed company Stanley Gibbons’ postage stamp investment business, based in Guernsey, has gone into administration and has ceased trading with immediate effect.
According to a report in the Mail Online, the Guernsey-based subsidiary is in possession of £12.6 million worth of rare stamps but has about £54 million of liabilities relating to the buyback guarantees, plus a further £11 million in undefined liabilities and £6.5 million it owes to the parent company.
The scheme – which guaranteed customers at least 75 per cent of the book value of their stamps at the end of a given period – was stopped last year amid concerns over the guarantees.
The administrator, PricewaterhouseCoopers, will take control of the stock and will let investors know about the options available to them.
The four employees at Stanley Gibbons in Guernsey will continue to be employed by the company. The rest of the Stanley Gibbons Group will continue to trade as normal.
Administrator Nick Vermeulen commented: “Stanley Gibbons (Guernsey) has faced a challenging trading environment and has insufficient cash resources to continue to trade. The directors have therefore decided to appoint administrators to preserve value and to deal with the interests of investors and creditors in an equitable manner.”
Carey Olsen advised Stanley Gibbons (Guernsey) in relation to its application to the Royal Court for an administration order. The restructuring and insolvency team was led by Counsel David Jones.