Sit-up Limited, the digital broadcaster behind Price Drop and Bid TV, is finalising a restructuring plan by way of a Company Voluntary Arrangement.
The company was sold to Tnui Capital in December 2013. It broadcasts to more than 12 million homes, with over 300 hours of live demonstrations each week.
The TV auction channels are believed to sell up to £5m of gardening product a year. Debts are believed to be £68m and the CVA is believed to be offering creditors £600,000.
Tnui Capital chief executive Bryan Green said: "A first class team has been assembled to drive through the restructuring of Bid TV and Price Drop. We believe the business will be preserved through a CVA which will save 350 jobs."
Will Wright, partner at KPMG and proposed ‘supervisor’ of the CVA, said: "The restructuring entails a £6 million investment from retail entrepreneurs Paul Wright and Val Kaye, which is conditional on the CVA being approved by creditors."
He added: "In recent months, Sit-up Limited has undertaken an enormous amount of work to restore margins and is developing a new operating model which will see it link with its suppliers in a more direct way. If agreed, the CVA, coupled with the investment from Paul Wright and Val Kaye, will be the final piece of the jigsaw, enabling the company to right-size its infrastructure and putting it on a much sounder footing."
The creditors’ meeting will be held at KPMG’s Salisbury Square office on 18 March 2014 at 2pm. The proposal will require the approval of in excess of 75 per cent (by value) of creditors voting.