The Black Hole enters CVA

The Black Hole, which traded as The Black Hole Creative Company, entered a company voluntary arrangement (CVA) with its creditors in June of this year.

It previously received £250,000 from Finance Yorkshire’s equity-linked fund in November 2012.

It is the second marketing business that has fallen into difficulty after receiving Finance Yorkshire investment, after Coolpink closed in December 2013.

Philip Crick, managing director at The Black Hole, confirmed The Black Hole Creative Company is subject to a CVA. He was unable to confirm the amount owed to creditors in the arrangement.

According to Companies House, the firm’s trade creditor liabilities stood at more than £540,000 at its latest annual accounts, dated April 30, 2013.

Mr Crick said the CVA was triggered by the exit of founding director Paul Senior.

“We were advised it would be best to move to a new entity,” he said. The firm is now trading as TBH Agency.

The business did not enter administration and intends to “fully honour” the CVA “for the benefit of all creditors”, Mr Crick added.

Finance Yorkshire chief executive Alex McWhirter said The Black Hole Creative Company was “strong and established” when the investment was made.

He added it was “disappointing” the company had entered a CVA, but that Finance Yorkshire’s other investments were making “very healthy returns”.

To date, Finance Yorkshire has invested £79m across 629 small and medium-sized businesses.