|Bid TV was previously known for falling price 'auctions'|
Sit-up Ltd's debts had mounted up and its fate was dependent on a vote among creditors.
Almost all of sit-up Ltd's creditors voted to approve a Company Voluntary Agreement (CVA), which, according to accountants at KPMG, will "enable the business to restructure its fixed cost-base".
Will Wright, partner at KPMG and ‘supervisor’ of the CVA, said: “Today’s ‘yes’ vote gives sit-up Limited the green light to renegotiate its infrastructure supply contracts, rightsizing its fixed cost base and giving it a platform to trade on a more competitive basis.
“Over 75% of creditors had to vote in favour of the CVA to pass the resolution. Today’s vote saw us secure significantly more than this, with 99% of all creditors voting in favour of the CVA.”
Sit-up Ltd was purchased in December by Tnui Capital. The company has already begun to make major changes to its channels.
Bid was rebranded "Shop at Bid" with fixed price products and lower postage costs. Price Drop has also seen changes, with "Best of Bid" replacing the channel's evening output.
It is not known if and how this debt restructuring exercise could affect Freeview carriage, which can cost several million pounds a year.