Leading UK bingo brand, Buzz Bingo has recently had its largest investor sells its stake in the company. Caledonia Investments has sold its stake in the company to asset management fund Intermedia Capital Group. According to Caledonia, the price of the sale was a “nominal fee”.
Caledonia has been supportive so far
The past year hasn’t been easy for bingo brands on the high-street, including Buzz Bingo. However, this brand had some impressive cash injections from Caledonia to keep the brand going throughout the summer of 2020.
Additionally, Caledonia had supported the bingo operator during its £40m makeover of all of the 91 venues in the UK. The brand, previously known as Gala Bingo, was forced to rule out the reopening of these clubs due to the impact that the pandemic has had.
Caledonia won’t provide extra funding
It is clear that Caledonia has been supporting Buzz Bingo for quite some time but now, it appears that enough is enough. With the third national lockdown still in place in the UK, Caledonia has moved on and won’t be providing any additional funding to keep Buzz Bingo moving forward.
By selling their stake in the brand for a “nominal fee”, they are showing that they believe that it is better to cut their losses rather than stick around and see what happens. The full amount of the deal hasn’t been disclosed but according to reports, it was nowhere near the initial investment that they made previously.
With their largest investor pulling out and the third national lockdown still underway, who knows what the year ahead looks like for Buzz Bingo?
