Life insurance firm DeadHappy, known for its controversial adverts, has appointed Evelyn Partners as administrators.
Adam Stephens and Kevin Ley of Evelyn Partners were appointed as joint administrators of the firm on June 24.
The administrators are working with the underwriting insurers to ensure all customer policies transfer back to the insurers with “minimal interruption to customers”.
According to Companies House, the insurer - which was thrown into the spotlight last year after an FT Adviser investigation into a Harold Shipman advert saw the company censured by the Advertising Standards Agency, the FCA and its underwriters, Shepherd's Friendly - will have its Gazette notice for strike-off issued on 2 July.
Last year, venture capital trust manager Octopus defended its £6mn investment in Dead Happy, as reported by FT Adviser.
According to the Octopus Titan VCT plc full-year report and accounts, published in May this year, the VCT (and other investment companies run by Octopus) still had over £6mn invested in Dead Happy, although no new investments were made during that year.
FT Adviser has asked Octopus if it sold its holdings before the company entered administration, or whether it is expected to make a loss on the failed insurer.
As part of the administration process the business will continue to trade on a limited basis, with certain employees kept on to assist the administrators with their work.
Adam Stephens, partner at Evelyn Partners and joint administrator of Dead Happy, said: “We are pleased to be able to assist with ensuring a continuity of insurance provision for all customers as the business is wound down.
"Evelyn Partners has been working with the Dead Happy management team and major stakeholders to enable a smooth transition for customers.
“We thank Dead Happy management for their support in this process and look forward to concluding the process with a positive outcome.”
Historic issues
Back in March, the life insurer revealed it could not accept new life insurance customers.
At the time, the firm said: “Our insurance partners have told us we can’t accept new life insurance customers at the moment.
“We wish it was different, we believe it should be different, but unfortunately not everyone agrees.”
Last year, FTAdviser broke the news that DeadHappy had come under pressure for putting murderer Harold Shipman in one of its adverts.
The ASA ruled that the advert caused “unjustified distress”, as well as “serious and widespread offence”.
Financial advisers at the time labelled the advert as “beyond despicable”, and the Financial Conduct Authority cracked down on future promotions from the firm with five conditional restrictions.
Responding to the fallout at the time, DeadHappy founder Andy Knott told FT Adviser: “Being provocative is different to being offensive and it is of course never our intention to offend or upset people. It is our intention to make people stop and think. If however you have been personally distressed by this advert, we do sincerely apologise.”
