Potential Pixipixel sale derailed by NI concerns and market instability

Potential buyers of camera rental firm Pixipixel were put off by concerns about the forthcoming rise in employer national insurance contribution, the geographical location of the company and insolvencies of competitor firms, says administrator.

Pixipixel closed down last month, blaming “significant challenges facing our industry.” 58 jobs were lost as a result of the company’s closure.

Pixipixel Rental Ltd appointed Andrew Hook and Julie Palmer, partners at Begbies Traynor, as joint administrators on 21 November 2024.

They were left with no choice but to close the company and sell Pixipixel Rental Ltd’s assets after investors cited the impact of next April’s rise in employer’s national insurance contributions, geographical location and previous insolvencies of competitor firms as reasons for the lack of interest in buying the business.

The lighting equipment of the company has been sold via a pre-packaged sale out of administration and an auction for the camera assets will take place next year.

Andrew Hook said: “Despite an extensive marketing campaign and engagement with suitable investors, we were unable to find a buyer for this particular business. Feedback from interested parties included worries about the effect of next spring’s rise in NI on attempts to turn the firm around. Regrettably, this resulted in the loss of 58 jobs across the company’s three sites in London and Manchester.

“Without a viable future, our only option was to realise the best possible value of the business’s assets on behalf of creditors.”