Media Corp. Liquidates Purple Lounge
Media Corporation Plc has announced the firing of all staff working behind the Purple Lounge brand as well as their intent to liquidate those holdings.
News of their plans to liquidate Purple Lounge comes some five weeks after Media Corp. unexpectedly closed down the site and left players in the dark about the status of their funds at the casino and poker room.
In a statement, new Media Corp. Interim CEO Adam Fraser-Harris and Chairman Executive Phil Jackson stated the following:
It has become clear during the review that the financial and trading position of the Purple Lounge division is no longer tenable due to historic operational and financial failings within the business. Accordingly, it is with regret that the Board announces that it has made all of the staff within that division redundant and will be instructing lawyers to file the relevant documentation to put the relevant companies into liquidation.
The status of customer funds tied up on the site remains unclear. Media Corp’s statement addressed these concerns in some vague wording saying, “The Board will specifically request that the appointed liquidators look into the financial arrangements within the Purple Lounge group of companies and to review the position as to player funds.”
Media Corp added that they are exploring routes to mitigate expected player losses which would seem to indicate it is unrealistic to expect the company will reimburse Purple Lounge customers in full.
Purple Lounge was previously licensed by the Lotteries and Gaming Authority of Malta which imposed a rule requiring the company to keep all player funds held in a segregated account. However, days prior to shutting down Purple Lounge, the Media Corp requested their gaming license to be terminated.
Shares of Media Corp (MDC.L) are down nearly 70% in the past 12 months.
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