Tuesday, 9 October 2018

Burning Night, the Bierkellar operator, has been placed into Administration by its P2P loan company Crowdstacker

BurningNight Ltd raised £7.5m via a P2P loan with Crowdstacker at the start of 2017. With a healthy 7% interest and short term of just 3 years, the rewards were almost too good to be true.

Well.....they were. 

For reasons as yet undisclosed (but fairly obvious) Crowdstacker has, as their major secured creditor, pulled the plug and emptied all barrels. Their hope is that the venues can be sold on, to recoup the debt. 

The sounds of the Oompah Oompah band will be no longer.

Writing about the opportunity at the time of the raise, the CEO stated -

“When we initially approached Crowdstacker it was because we wanted to choose a way of financing our expansion that would allow our existing loyal customers as well as new potential customers and investors to participate in our growth.  
“It has proven to be very popular with investors, and mutually beneficial to all, so it makes sense to extend this source of funding.”

Maybe customers wont be thanking him for much now. I think it is more likely that the banks said no and everyone else said no.

It does seem a little curious that this company was able to raise £7.5m so easily  - its initial target was £3.5m but it then doubled that. What real DD was done by Crowdstacker has to be questioned. If they did do their job, then someone there needs firing. 

These P2P loans are supposed to go to established companies with relatively solid foundations. Not flighty doubtful operators. 

Hopefully it will all end well. 


  1. So Where did the £7,5m go in less than 2 years?

  2. Shocking lack of due diligence by Crowdstacker . They loaned £7.5m+ to BurningNight ...yet the Balance Sheet of Burning Night group shows they never , at any point , had assets in excess of £2m . Surely they never had a realistic chance of making repayments or even interest payments . It now looks like it is all gone as the Administrator will not be concerned with their initial lack of due diligence. Gross negligence , at the very least , by Crowdstacker who continue to operate as if nothing happened and deflect all queries to the Financial Ombudsman ! what can be done ??