A group of 80 former employees of the defunct Blinkbox music service have launched a £10m class action lawsuit against the company that acquired it from Tesco for damages claiming redundancy pay outs were not honoured. The claim is against Guvera Ltd and two of its UK-based subsidiaries, who purchased the music service from Tesco in January 2015. The lawsuit, issued through the UK Employment Tribunal, seeks damages following the dismissal of the entire workforce shortly after this acquisition.
Blinkbox Music Ltd fell into administration in June, owing licensing debts to major record companies. The group of workers claim they were given written assurance from both Tesco and Guvera that they would receive redundancy payments if cutbacks were required. The lawsuit argues that the Blinkbox music service was taken from solvency (with a reported £3.5 million in the bank) to insolvency within 5 months following its sales to Guvera.
The Guardian quotes Paul Jennings, a partner at City law firm Bates Wells Braithwaite representing the former employees., who saud that 100 staff were dismissed without any warning and without any notice or redundancy payments saying “[Also] at the heart of this case is the data of 2 million to 3 million users of the Blinkbox music service. We have no doubt that as the case develops and the evidence emerges customers and investors will want to understand what precisely occurred.”