The Company who owned defunct Blinkbox, a music service supplied by Tesco, is being faced with a Â£10 million class action lawsuit after 80 former employees claim their redundancy payments were not satisfied.
The claim is formally against Guvera Ltd and two of its UK based subsidiaries who purchased the service from retail giant Tesco in January 2015.The employees are claiming for damages after the entire workforce was dismissed shortly after the purchase of Blinkbox.
Only 6 months after the purchase, Guvera put the company into administration and laid off 100 staff. Â The group of 80 staff that have instigated the lawsuit argue they were given assurance from both Tesco and Guvera in writing that redundancy payments would be given if cutbacks were needed. They also highlight the fact that the Blinkbox music service was taken from solvency (with a reported Â£3.5 million in the bank) to insolvency within 5 months following its sales to Guvera in their claim.
ÂNearly 100 staff were dismissed without any warning and without any notice or redundancy payments,Â said Paul Jennings, a partner at City law firm Bates Wells Braithwaite representing the former employees.
The lawsuit is being heard in the UK Employment Tribunal. Many users and investors linked with the service will be keeping a close eye on the outcome.