The parent company of the firm that previously held the Isle of Man TT merchandise contract is looking for third party financing to pay its debts.
That’s according to the Minister for Enterprise, Tim Johnston.
Cube Partnership Limited was awarded a contract by the Department for Enterprise in January this year before going into voluntary liquidation in July.
The contract is now held by its parent company, Cube International.
As of last month, the firm owed local businesses £65,000. The company also owed the Isle of Man Government £160,000.
Mr Johnston said: ‘Whilst the monies still remain outstanding and the Department continues to actively pursue these debts, Cube International have advised the Department that third party financing is currently being sought and that they will make the outstanding payments including local supplier payments when that has been secured.’
The Department for Enterprise is liaising with all local suppliers and continues to make representations on their behalf to Cube International, according to Mr Johnston.
He added: ‘As the department isn’t a contracted party, the Department has also advised local businesses owed money to continue conversations directly with Cube International as well.’
Speaking of the tender process, he said: ‘Whilst the expressions of interest process did receive local company interest, in the final invitation to tender process, no Manx companies submitted bids. ‘The Department received two formal bids – both from UK based companies. The contract was awarded as per the pre-defined evaluation criteria which included operational facilities, team structure, previous experience, design and product sourcing, development and manufacture, logistics including warehousing, fulfilment and shipping, e-commerce experience, customer services, sales and distribution plan, sales reporting, PR and marketing and local economy contribution.’
But Douglas North MHK, John Wannenburgh who tabled the written questions on the matter last month said that someone needed to be held accountable for the failed contract with Cube.
He also called for Mr Johnston to resign over the matter.