AIM-listed Media Corporation has placed its wholly-owned subsidiary, the internet advertising business Eyeconomy, into administration with KRE Corporate Recovery LLP.
This news follows the group's announcement on December 12th that Eyeconomy was expected to make a loss for the division for the 15-month period ending December 31st 2012.
In a statement published by the company on Monday, Media Corporation stated: "Eyeconomy's considerable drop in sales, coupled with the growing negative net asset position of the business, has led the board of the company to take the tough decision that as Eyeconomy is no longer an appropriate fit with the ongoing strategic direction of the group its resources are better focused on the pending launch of Intabet and associated sites. A further announcement regarding the administration will be made in due course."
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The group reported that other trading operations were unaffected and continue to trade as normal. The company said it remains completely focused on development of the Intabet platform and new, complimentary technologies and products.
Media Corporation's shares were down 4.76% to 0.10p at 13:42 on Monday afternoon.
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