VIP enters administration putting 265 jobs at risk
Anthony Collier and Geoff Rowley, partners at FRP Advisory, have been appointed as joint administrators to Must Have Limited which trades as VIP.
Owned by US company Electronic Cigarettes International Group, the business operates 165 retail stores and employs 265 staff.
ECIG said VIP went into administration following an unpaid tax bill of around £2.5 million which is owed to HMRC.
It added: “Despite multiple attempts to satisfy the tax obligation and other expected near term obligations, the company is unable to continue to fund the operations or any obligations of MHL.”
The joint administrators at FRP Advisory are marketing the business for sale whilst continuing to trade the VIP business across its retail outlets and ecommerce division and retaining all 265 staff.
Collier said: “VIP is a strong and well established brand in the e-cigarette market. Historically the business has been profitable and cash generative and we are seeking to continue to trade the business whilst a purchaser is sought and invite interested parties to contact the administrators.”
VIP was bought by ECIG in 2014 for £30 million.
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