Blinkbox Music is a music streaming service available via web and mobile devices, with around 2.8m members based mainly in the UK and Ireland, and over 200,000 monthly active users. Tesco disposed of the company as part of its sell off of its digital entertainment businesses at the start of the year.

 Australian firm Guvera bought the company in January for significantly less than the £10m Tesco paid to acquire it back in 2012, but had struggled to make it financially successful in a very competitive market according to the administrators.

Finbarr O’Connell, Smith & Williamson and joint administrator, said: ‘The company has faced significant financial pressure in recent months.  It has sought to undertake a financial restructuring, and has reduced staff numbers.  However, these financial pressures have continued to grow, and the company’s director, after trying to achieve a quick sale of the company/business, was faced with little choice but to place the company into administration.’

Smith & Williamson said it is currently retaining the company’s Oxford based staff while the search for a buyer goes on.

Adam Stephens, associate director and joint administrator, said: ‘We expect to undertake an accelerated sales process and are trying to work with all stakeholders to preserve value in the business.’