Thursday, 25 May 2017

Ethos spins a complicated web.



Ethos Global raised over £700k on Crowdcube just last year. Accounts are now 8 months overdue and other companies now appear to be running the Ethos Yoga studio in London. Where are shareholders in this complicated web?



Shareholders invested in Ethos Global Ltd on Crowdcube  - a company run by Dr Theodoros Koutroukides and Jennifer Lynn Hersch. Company number 07874390. Remember those names.

We have written about this company before - here

Ethos was described by Crowdcube as - 

Looking to disrupt a £50b+ global industry, ETHOS is a chain of boutique yoga & fitness hybrid studios combining health, science and technology. Growing the cash-generating Cambridge headquarters........


For a company with one studio, you might think the use of the word 'chain' to be typical Crowdcube BS. Shortly after this investment was completed, the 'cash generating Cambridge HQ' closed down; annihilating the one link chain. The property, St Andrews House First Floor, appeared on the market for re let and is still there with Bidwells.

Shortly after this, a new Ethos studio opened in London. This studio is still running but is not run or owned by Ethos Global according to their website's T&Cs. This studio is run by Ethos London England Ltd co number 10601085. Not to be confused with Ethos London Ltd which is an entirely separate company. The Directors of Ethos London England are one Theodoros Koutroukides and Jennifer Hersch. By dropping the 'Dr' and the 'Lynn' they appear at Companies House to be different people to the ones running Ethos Global - but they are not. Hersch has now resigned from Ethos Global. Since February 2017 when this company was set up, it has changed its name to Soma London England Ltd. It is in turn 100% owned by Soma Holdings, company number 10598796, which is 100% owned by Koutroukides. 

Meanwhile accounts due at the end of September 2016 for the Crowdcube funded company, are missing. So what exactly do shareholders in this Ethos now own? Who knows. Crowdcube projections had them making £1.6m by the end of 2016 and £4.6m by the end of this year. Who wouldnt want a piece of that; if it was true?? It seems unlikely as Ethos Global dont seem to do anything anymore. Maybe that's their version of Mantric Yoga.

The company was issued a compulsory closure notice a few months ago but has since had this rescinded as it has raised what appears to be £280k in a new share issue. Or so the filing shows. As it appears to have nothing to do with the London Ethos Yoga studio, why would anyone invest in it? Again who knows.

All in all, a very strange set of events and outcomes.....so far. The accounts would help but when we asked (repeatedly) about them we got nowhere. We were told that the company was just fine - doing well. Certainly the London studio, which appears to be 100% owned by Koutroukides is doing well. We just wonder what money helped to set up this studio? Could it have been the £700k plus raised for Ethos Global on Crowdcube? If this is all perfectly normal, why change the company name, twice, set up a totally new company structure and close down your cash generator and why appear in CH filings with different names to the original company directors' names. One being different might be normal but both of you?? Seems unlikely. 


5 comments:

  1. Two words for you which explain a lot. Volunteery insolvency

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    Replies
    1. Thanks. One word for you - sowhat?

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    2. Or in more detail this company was struck off by court order so not in any way a VI or VA or V anything. Various stories about various goings on yet TBC is as close to V as we can get. Newco up and running seemingly using old company investment etc etc. Liquidators report (there is no liquidator in a V arrangement FYI) is awaited. As are court proceedings. Would be curious to know why you think this is a VI. In a VI all debts and liabilities have to be paid off prior to closure and in this instance all shareholders with voting rights would have needed to be on side. None of this happened.

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  2. Who is the liquidator?

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    1. I believe the liquidator is:

      M Commins
      The Official Receiver of Cambridge
      Eastbrook, Shaftesbury Road,
      Cambridge, CB2 8DR

      I would write to the liquidator to express your concern if you are a shareholder.

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