A Slough-based telesales financial provider has entered liquidation after failing to keep up with emerging technologies.
Davenport Black Limited suffered from a shift in market preferences towards online loan applications, resulting in a loss of its client base and, ultimately, its profitability.
The company had previously considered a CVA (Company Voluntary Arrangement) process; however due to “large fixed overheads, challenging time to pay arrangements with HMRC, and diminished income available to service its debts” the directors of the company chose a CVL (Company Voluntary Liquidation) instead.
Andy Pear, partner at BM Advisory, was appointed joint liquidator of the company on 6 August.
Pear said: “At its peak, Davenport Black Limited was one of the larger players in the telephone-based personal loan broking market, with 120 staff operating from a large call centre in Slough.
“With the digital revolution and an increased focus on the internet, there has been a significant shift in the dynamics of the telesales brokerage market in recent years.
“The prevalence of smart phones, laptops and iPads means that most people now apply for consumer loans online and we have seen this have a significant impact on the profitability of many telephone brokerage businesses.
“It is essential for businesses to be aware of their market place and be flexible enough to adjust to the changing demands of their customers. Small and medium sized businesses in particular have the advantage over their larger counterparts in that they are more agile and can be quicker to respond to market changes.”