News
a21 the parent company of SuperStock and ArtSelect files for bankruptcy
a21 Inc. (ATWOE) has filed for bankruptcy court protection yesterday on behalf of both its subsidiaries, the on-line wall art business, ArtSelect, and the stock photo division, SuperStock. Under the proposed terms of the filing, Masterfile Corporation will purchase the assets of SuperStock, excluding cash and accounts receivable, for US$1.5MM. Another company, Metaverse, will purchase ArtSelect for US$700K.
According to A21’s CEO, John Ferguson, “Over a year ago we announced that the company and its subsidiaries were exploring strategic alternatives. After exhausting all possibilities, and considering the current state of credit markets, we determined that the best way to complete a restructuring of our company and to protect the franchise value of our underlying businesses was to pursue a sale of the company’s assets under court supervision in a Chapter 11 proceeding.”
Signs of trouble at the company have been evident for a long time. The company has been unprofitable for at least three years. The situation became critical, recently, when news spread of non-payment of several months’ worth of commissions owed to photographers.
The demise of Superstock follows a string of business failures in the stock photo industry including the fire sale of Index Stock to photolibrary two years ago, the discontinuation of PhotoShelter’s stock photo licensing business, the abrupt shutting down of Digital Railroad this year and the impending purchase of Jupiter Images by Getty, also at a fire-sale price.
Web: www.a21group.com
Posted in: A21 Group, News, Stock Photo Companies, Superstock
