Wednesday, 9 January 2019

Crowdcube's NY starts with a Bang and Whimper as I Love Gorgeous piles into the administration buffers



As yet another expensive flop on Crowdcube heads out of the door to oblivion, we ask if Crowdcube's 1 star rating on Trust Pilot is justified. 


I Love Gorgeous raised £690k on Crowdcube in the Summer of 2016, so just over 2 years ago. Now it has been put into administration in an attempt to find a buyer. As with most administrations, it seems unlikely that Crowdcube investors will see their money again. The company has 3 outstanding charges with HSBC registered at CH. All are 4 years old and do not seem to be for large amounts.

The company had projected that in YE March 2019 it would be making a profit of £1.1m on a turnover of £4.8m. Well if you believed that you will believe anything but clearly investors did. As is alarmingly common on Crowdcube, the actual figures given to potential investors for years gone by bear little resemblance to figures filed at CH. The company was making profits before coming to Crowdcube to 'expand'. Exploded might be a better term. 

Be it bad luck, unfortunate timing, Brexit, the easterly wind or simple crass management, the outcome is a familiar one. Another business failure promoted and facilitated by Crowdcube. HNY boys.   

2 comments:

  1. Archivulim - thanks for your comment but we have already written up the collapse of Brew on another post. Thanks for reading and good luck with your investments.

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  2. Haha - Hilarious - The Chickens are coming home to Roost ! The PR Woolves (stock pumnpers) of Exeter have to be done and finished now: https://uk.trustpilot.com/review/www.crowdcube.com?languages=en&stars=1&stars=5

    FCA rules state FCA operatives must have appropriate experience to run a FCA regulated firm - how Luke and Darren managed to get this far is unbelievable......now the results are coming in, and its round 100 M they have burnt over the last 7 years.

    What investors don't realise, is that they have just raised 7 Million (which won't be EIS qualifying by the way, even through they said it would) and if the Financial Ombudsman finds wrongdoing at Crowdcube then it has the power to order Crowdcube to return investors money.

    FCA will only work on complaints: it regulates looking in the rear view mirror,

    Their time is now limited to get in your claims before they head into recievership where your hopes of a successful claim are massively reduced.

    Wronged Investors - They have 7 Million quid - you can complain to FCA and FOS now and get your money back if you have been wronged !

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