E-cigarette retailer VIP has fallen into administration, jeopardising 265 jobs across the UK.
The retailer, which boasts a nationwide estate of 165 stores, will continue to trade as usual as the FRP advisory act as administrator seeking potential buyers.
According to its US owner Electronic Cigarettes International Group (ECIG), Must Have Limited – which trades under the name VIP – was unable to pay around £2.5 million in taxes to HM Revenue & Customs.
The subsequent administration has piled a further £85 million of outstanding debt on to be “immediately due and payable”.
The US parent company acquired Must Have Limited in 2014 for £30 million.
ECIG chief executive Dan O’Neill stated that the company was now looking for “strategic alternatives” to address the debt payments, as the subsidiary was under performing in the UK.
FRP Advisory’s joint administrator Anthony Collier said: “VIP is a strong and well-established brand in the e-cigarette market.
“Historically the business has been profitable and cash generative and we are seeking to continue to trade the business whilst a purchaser is sought and invite interested parties to contact the administrators.”