Bookmaking firm Pagebet collapses with loss of 125 jobs

May 22 2010 by Chris Knox, The Journal

THE North East’s biggest independent betting shop operator has collapsed with the loss of 125 jobs after it fell into the red trying to build a nationwide chain.

Durham-based Pagebet Bookmaker has gone into administration after growing from just 15 shops to 53 branches in three years.

Administrator PricewaterhouseCoopers has sold on 27 outlets, employing 131 staff, to Oxfordshire-based bookmakers chain Stan James and three sites, employing 13 staff, to Newcastle-based Platinum Leisure (North East).

But 23 stores have shut and 125 staff have been axed. These include five branches in the North East with others across the North of England.

The company had grown quickly in recent years buying stores from other operators and opening its own stores.

But its administrators said that despite winning millions of pounds of investment its cash-flow has dried up.

Its most recent trading figures showed annual losses increased from £484,000 in 2007 to £2.3m in 2008, despite the firm growing its turnover from £11m to £28m.

PwC said one reason for its collapse was an aggressive expansion strategy as it aimed to run 100 sites despite the economic downturn. The company said it had been forced to absorb a large proportion of the costs associated with the liquidation of its online business Pagebet Limited earlier this year.

Craig Livesey, joint administrator at PwC, said: “Pagebet Bookmakers has experienced very challenging trading conditions and has generated significant losses.