AO saves more than 70 jobs at mobile phone retailer which entered administration
AO has saved more than 70 jobs after acquiring certain assets from a mobile phone retailer in administration.
The Bolton-headquartered business has snapped up the assets, principally the intellectual property rights in the websites for Affordable Mobiles, Buy Mobiles and Mobile Shop, for £2.2m.
A1 Comms is based in Derbyshire and entered administration earlier this month.
The firm, which has offices in Alfreton, Darley Abbey and Derby, was established abolished in 1997.
In a statement issued to the London Stock Exchange, AO said: “As AO seeks to expand its mobile proposition, the acquisition of the brands and platforms will provide AO with expertise and synergies that will accelerate this ambition.
“AO is also pleased to have saved 73 jobs through the transaction.”
According to its most recently filed accounts, for the year to April 2022, A1 Comms had a revenue of £152m and a profit of £451,992. At the time, the company employed 155 people.
The acquisition comes after City A.M reported that Mike Ashley’s Frasers Group now owns almost a quarter of AO after the retail giant further upped its stake.
The owner of House of Fraser and Sports Direct now has a holding of 24.7 per cent in the Bolton-headquartered company, according to a new filing with the London Stock Exchange.
The Derbyshire-headquartered group had previously owned just over 23 per cent of AO’s shares.
Frasers Group first invested in AO in June 2023 when it acquired a stake of almost 20 per cent in a £75m move.
In November 2023, AO raised its profit guidance despite revealing a fall in revenue.
At the time, the business said a decision to stamp out unprofitable sales led to a 12 per cent dip in revenue during the interim.
But adjusted EBITDA surged 205 per cent to £27m up from £9m in the same period last year, as the group was bolstered by a simplification of its operations including exiting a trial with supermarket Tesco last year.