Darryn Lyons has bought the assets of paparazzi agency Big Pictures just after the company went to administration.
The company’s assets were sold to an associated company of Big Pictures called BPGG Limited, of which Big Pictures founder Lyons is a shareholder and director.
BPGG Limited purchased the assets of Big Pictures, which marketed itself as “The World’s Biggest and Best Picture Agency, for £164,000.
In a letter to creditors, which include a number of freelance photographers, administrators RSM Tenon said 25 parties had initially shown interested in buying the assets.
“A deadline was set for offers to be received by 17 September 2012 which resulted in three separate offers being received.
“The first offer was a percentage of future turnover; involved no cash consideration and was therefore discounted.
“The second offer was for the purchase of the picture library only for the sum of £100,000 payable in full upon completion.
“The third and final offer was from BPGG Limited and was for the purchase of the majority of the assets of the company together with the picture library for the sum of £164,000.
£114,000 of this figure was to be paid upon completion woth £50,000 being paid as deferred consideration within three months.
“A personal guarantee was provided regarding the deferred consideration.”
An independent agency is said to have valued Big Pictures’ library of an five million images was at zero
RSM said: “No value was attributed to the picture library due to the fact that an asset of this nature is inherently difficult to place an accurate value on.
“This was further complicated because during the period of marketing the business we were advised that a historic option existed regarding the purchase of the picture library.
"Legal advice was taken regarding the option which indicated that we should treat the option as valid. The option was exercised as part of the sale to BPGG Ltd.”
RSM also said that alternative options were also considered. These included liquidation, which would have raised around £50,000 before costs.
It is understood that former Big Pictures chief executive Nigel Regan is involved in BPGG.
Four ex-members of staff are understood to have gone with the new company, which is believed to be trading out of offices in St John's Lane, nearby Big Pictures’ former offices in Clerkenwell, London.
When Press Gazette visited the offices earlier this month no one from the company would comment.
Lyons tweeted this morning:
3 choices in life: Give up, Give in, or Give it your all.”
— Darryn Lyons (@DarrynLyonsMrP) October 17, 2012