Financial planning software provider, CCUBE Integrated Wealth has appointed DVT Group as its voluntary administrators as a result of COVID-19 and lack of revenue to make up the start up’s expenses.
Speaking to Money Management, DVT Group’s administrator and senior adviser, Mark Robinson said the group was appointed by the directors of CCUBE on 1 April.
He said clients were experiencing tough times due to the COVID-19 pandemic and the slow growth pattern of acquiring more financial planners to provide services to that growth had levelled off.
The second reason, he said of the appointment, was that it was a start-up organisation and its expenses were significantly greater than revenue and there were no longer any shareholders or providers who were willing or able to provide any further funding to make up the revenue over expense going forward.
Robinson noted that the sale of the business was advertised in the Australian Financial Review today and DVT were looking for expressions of interest by the Thursday this week.
“We’ve received over 10 calls this morning, as a consequence of our ad, and some other enquiries that we received privately prior to the ad going in the paper from people close to the business,” he said.
Robinson said he was looking for a party that provided the best price, capabilities of facilities, and how quickly they could move.
“It’s not just price but also certainty of being able to come up with funds quickly and timing. It’s a combination of certainly, timing, and amount in respect to offers made for the business,” he said.
Next week Wednesday, DVT would hold a meeting with creditors by way of conference call to give an update on how the administration and sale was going and what the situation might look like going forward.