Friday, 30 December 2016
Cornerstone's razor sharp Crowdcube pitch blunted by results
Cornerstone raised over £860k on Crowdcube in 2015. Results for YE December 2015 show losses more than double those projected.
We had expected this. A company using free give aways to build its client base on line is bound to hit the wall when they try to charge - unless the product is good. Reviews seem very nixed. Mind you that didnt stop over 200 people investing very nearly a million.
Its too early to tell for now. 3 of the original directors have left - never a good sign. Will Hobhouse is their Chairman - the man who built up Whittards Of Chelsea; colloquially known as 'House of Cards'.
Whittards was one of those companies that kept expanding and expanding in the late 80's and 90's but never seemed to make any money for any length of time - making what seemed to be some disastrous decisions along the way. And then it was sold for £21m in 2005 (how they managed this is the stuff of business legend) and went into liquidation on large losses at the start of 2009 - Whittard owed over £5m to trade creditors and was employing around 950 staff, when it ran for cover. In a pre packed deal (here we go) the remnants were bought out and it still occupies our High Street. Its eventual losses were many millions.
Maybe a lesson there?
Ouch - bloody cheap razors!