We mentioned Brew recently - they said they had closed for 'refurbishment'. This was a lie. Funded via Crowdcube in 2015 this is a typical result for the platform. All the cash spent, no functioning body left. Closure. Founder excuses. Nothing from the platform.
How many times do we have to see this before someone gets the idea - Crowdcube promote anything using everything. Crowdcube pitch projections showed 3 years of profit 2016/17/18 YE June. They have made only increasingly large losses. No accounts for 2017 have been filed.
In his email to SHs, the founder Alex Holland, goes on about his virtuous efforts to reassign the lease and how none of this was his fault as even Jamie Oliver is struggling. In denial, seems a polite way to put it. He even has the cheek to suggest that the landlord is being unreasonable - wanting his rent. Finally he asks investors to lend him £20k.
Alex described himself on Crowdcube as 'Entrepreneur and leader of teams, founder of the Social Enterprise which saved Brixton Market from demolition.'
I applaud all entrepreneurs for having a go - god knows it is what I have been doing since 1985. But I really dont applaud making up stuff so that your pitch on Crowdcube gets funded using tax breaks. Then you achieve didly squat. Meanwhile in your hopeless efforts, you catch a whole load of innocent creditors in the crossfire. Many of these agreed to trade with you when you told them you had raised £180k on CC.
As it turns out, Alex has not yet managed to get investors their EIS certificates - this from the man who is a leader of teams etc etc. We dont let people drive here without a license - but we do let them screw up other peoples' businesses.
Where did the £180k go? Assuming this outfit managed to sell a few cups of tea and the shopfit was no more than £20k? They talk of trade creditors and have an o/s rent balance of £20k.
Come on - we can do better than this surely??