Pagebet Shuts Down Operations

BOOKMAKERS Pagebet has placed its internet betting business into administration.

However, the firm has agreed with administrator Tenon Recovery to purchase the assets of the business which it said would secure nine head office jobs at its headquarters in Durham.

All customer funds placed online would also be secured and guaranteed, it said.

Pagebet intends to focus on its growing chain of highstreet betting shops, along with its telebetting business.

It plans to open a 57th branch at Shiremoor, in North Tyneside, and is expected to announce a rights issue to raise around £2m to continue its expansion plan to acquire further shops in the UK, possibly up to 25 more.

While punters will no longer be able to bet online with the firm, they will still have access to a live feed via pagebet.com comprising a full range of betting markets and prices.

The nine jobs will be retained elsewhere within the company.

Explaining the decision to quit the interactive betting platform, chief executive Austin Carney said: "The heavy investment required to grow the internet business in a difficult period of recession was out of line with equity partner Advantage Capital's and my board of director's vision for the company."

In February, Mr Carney, who returned to lead the company earlier this year after former managing director David Archer left to pursue other interests, said the betting industry continued to face a shake-up, but Pagebet was still in a "great position" to take advantages of opportunities as they arose.