Sunday, 29 April 2018

Collapsed Ethos Global pair open new businesses by the month

Ethos Global was forced into liquidation 10 months ago. The founders have since moved into the venue fitted out by Ethos Global in London and started a new business, SOMA. 

We have written many times about this outfit. Crowdcube investors put in around £800k in 2016. Then almost immediately the company 'closed' its only studio in Cambridge, moving to the London site and spending most of the cash there. The Cambridge landlords then had Ethos closed. All quite straightforward.

Well it should have been. But the local liquidators couldnt handle the situation and in February of this year they gave up and handed the case to a London firm, Mazars LLP. So essentially since July 2017 nothing has been accomplished.

Meanwhile, the two founders have been very busy. Not only have they used the assets of the old co to set up their expensive new studio in Spitalfields, but they have launched a plethora of newcos. The old Co is not yet buried and serious questions over their conduct have to be answered.

The two founders did make an offer of free shares in Soma but we have it from investors that this hasnt been followed up.  

Soma has now grown wings. The two founders have a Soma Holding Ltd which in turn has a share on Soma Retail Ltd and  Soma Education Ltd and Soma London England Ltd. The two of them also have Minerva Method and the good Dr has also opened Singularity Healthtech Ltd. All of these newcos were established on the same day in February 2018. Something is brewing and it smells. 

Here is the Q. If we are right that these two directors have behaved in such a way over Ethos Global that their ability to be directors in the UK might be called into question, then none of this activity will stand. So why has it taken so long to make any progress on the liquidation. In the last conversation we had with the Cambridge liquidators, we were told they were waiting for the directors to come for another interview to explain things.

You might ask what Crowdcube, who allowed these two to take £800k off their 'members' have done about any of this. The answer is nothing, as it always is with Luke and Darren. Sweet as pie when they are about to get your money and their commission; shadows when the yoga goes pear shaped. 

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