Major private investor backed the buy-out
Coverzones could be back trading “within months” after management bought the online SME aggregator’s assets out of administration.
The London-based company, which launched in 2008 and received backing from insurer MMA, went into administraton earlier this month.
Former Coverzones chief executive Simon Ball said a “major private investor” had backed the buy-out. However, he said it was unlikely that MMA would come back on board, but added that they maintained a “good relationship.”
It is expected that the management team will make a number of changes to the business before its relaunch, with Ball admitting that “all options are available”.
“I’m hoping to implement key changes that we knew were necessary prior to going into administration,” he said. “We were in the process of putting new development into place.”
Ball claimed that the business was “left at the altar” in February 2009 when takeover talks collapsed, and that this had a “disastrous effect”.
The company had already received more than £8m of investment to develop the full-cycle system that supported its online price comparison and policy management service. Ball added that prospective investors have already expressed an interest in putting in fresh capital.