After originally opting to sell all assets bar the Zivo Web development business and an interest in Monet Asia Pacific, LibertyOne has gone to the extreme and opened up the salesroom floor for all of its assets in a last-ditch effort to stay afloat.
After announcing a $58 million loss for the last six months, September saw the LibertyOne board appoint KPMG Corporate Finance to advise on the sale of those assets considered too cost-inhibitive. At the time, CEO Marcelle Anderson indicated the main focus of the company would be fixed onto Zivo and its 49 per cent interest in Monet Asia Pacific.
Last week the company took further action, closing its online auction arm, uBid, with all relevant Web sites to close by October 27. The company estimates it will save $6 million in costs as a result and has laid off 40 staff in the process.
It has also sold its share in Greg Norman Interactive LLC, which should save a further $600,000 in costs.
Days later, a statement released to the ASX suggests the original intent to keep Zivo and Monet Asia Pacific on board was not possible. The company is in discussions with Von Neumann Companies over its interest in Monet Asia Pacific and all other ventures, including Zivo, Satellite Music Australia and Tiger Exchange are considered for sale.
"In its present circumstances, LibertyOne does not have sufficient funds to provide the working capital needed to achieve an appropriate long-term return for shareholders," said CEO Marcelle Anderson. "Accordingly, an injection of capital into LibertyOne or into the relevant businesses following a sale is necessary."