The management company of pop act Blue has gone into administration halfway through the group’s comeback tour.
Blueworld (UK) LLP – which manages the band’s website and fan club – has entered a formal insolvency arrangement with John Kelmanson of Kelmanson Costa Business Solutions (KCBS) handling the case.
Speaking to Insolvency News, a spokesman from The Outside Organisation – which handles publicity for the band – confirmed that Blueworld is set to be “replaced” by a new company, suggesting a pre-pack administration may be on the horizon.
According to media reports in the public domain, creditors are believed to be owed thousands of pounds, although the practitioner handling the case has refused to comment on this individual case.
Quoted in The Sun newspaper, the spokesman said: “Blue have been open about their recent financial struggles and are restructuring their business model.”
A further statement is expected to be made within the next few days to the wider British press.
The band’s website had charged fans £25 for membership, but it is not currently open for new member registration.
Blue is currently in the middle of a sell-out European tour, following a revival sparked by an appearance on ITV show, The Big Reunion.
Anthony Costa, Lee Ryan, Simon Webbe and Duncan Inglis (aka Duncan James) recently released a comeback album, ‘Roulette’, which entered the official UK chart at number 13.
The band originally split in 2005, reforming in 2011 for the Eurovision song contest where they represented Great Britain, finishing in 11th place.
Blueworld entered administration on 1 May 2013.