Wednesday, 10 February 2016
Seedrs failure Hokkei indebted to £466,000 in just a few months
Hokkei raised £320k on the ECF platform Seedrs last summer.
As far as we know the Chinese takeaway brand that was to change the way we looked at Chinese takeaways, never opened. It went into liquidation in the New Year.
The liquidators report is still warm and shows the company has been closed owing £466k to a mix of the usual suspects - HSBC, creditors and shareholders. The company had no assets apart from cash at bank of £15k.
So you have to ask where did all the money go?
£320k from equity investors and another £60k from HSBC has been swallowed up with absolutely nothing to show for it apart from further debts. That comes to one hell of lot sampling of Chinese foods in 6 months - more than £2k per day, seven days a week. Talk about wonton, it would mean several extra tonne.
Surely if money was spent on the first unit fit out, some of this must be recoupable against the fixtures and fittings?
These guys should be banned from ever using this type of funding again.
Seedrs who are on the whole one of the better platforms, should be issuing reasons for the almost instant failure of this venture. If nothing else, we need to learn some lessons from it.