Scotbet shops saved as bookmaker is bought out of administration
The firm went into administration after challenges from increasing competition, a shift towards online betting, and changes to maximum stakes on fixed-odd betting terminals (FOBTs).
Out of the company’s 41 shops, 11 will close with the loss of 27 jobs but the remainder will remain open, saving 127 posts. The business was sold by receivers at RSM to Scotb123, which is run by former Scotbet directors.
John Heaton, chairman at Scotb123, said it had been a “very difficult time”.
“I am particularly sorry for the staff in the branches which have closed. Independent bookmakers have been hit hard by increased costs and the reduction of the FOBT stake was the straw which broke the camel’s back.”
RSM is working with the Redundancy Payments Service to support affected staff.
Paul Dounis, RSM restructuring advisory partner and one of the joint receivers, said: "The business faced a number of changes to the trading landscape, like other businesses in the sector, and was unable to continue to trade.
"The sale of the business secures 127 jobs and it ensures continuity of the majority of the Scotbet shops. Regrettably this process has led to the closure of 11 stores, resulting in 27 redundancies.
"We are working closely with Redundancy Payments Service to support those employees who have been made redundant to process claims as quickly as possible."