Thursday, 3 March 2016

This should not be allowed.


Crowdcube have a new pitch from the Yorkshire Meatball Company. We love Yorkshire and we love meatballs.

However.

This company has a subsidiary in liquidation and the body is still warm. This company never filed any accounts, even though it was incorporated in November 2013. It used the old trick of moving the filing date to avoid doing this, before liquidating. What's more, the company pitching is due to file accounts in just over 3 weeks time.

So firstly how can we have a company in liquidation, with albeit small debts of only £120k but which never filed any accounts, doing a pre packed deal with itself, now punting for cash on Crowdcube? Surely common sense dictates that this liquidation must be put to rest before any new business can be promoted on a FCA regulated platform, selling its equity to the public.

Secondly why, if there is nothing to hide, does this company choose not to publish its accounts at CH a few weeks early?

With the well catalogued, very poor standard of DD in the Crowdcube out to lunch department, it is almost certain that the information provided will not turn out to be accurate. That is one thing we can be certain of.

Just imagine, you all invest and the company hits 'unpredicted' problems in 18 months time  - nice easy way out is to close said company and then do another pre packed deal. Its worked once. A good example of exactly this is another Crowdcube success story Crumpet Cashmere, featured here. They did a pre packed and then launched Crumpet Cashmere, which funded on Crowdcube. A year later they hit the rocks and are in the process of setting up another pre packed deal. It could go on forever! Serial pre packers they should be called.

Mr Atkinson of YMC had Broker 4 Broker liquidated, so its not new to him.

It's all load of balls in our opinion. Order the chicken.

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