Grubklub, who owned the online Grub Club app, raised £288k on Crowdcube in 2015. Their projections showed profits for YE 2017 of £2m. Accounts show losses £240k. But that is not the main story.
Update 14 July 18. A SH has been kind enough to share correspondence - which in turn shows this company up for what we believed it was - a sham. A sham that has ripped off shareholders and that Crowdcube have taken so little interest in since claiming their commission, that their own website tells people, is fine. Well it is not and will according to the remaining founder close shortly with all investors cash lost. For Vizeat it wasnt so much a takeover as a shovel and sweep job. Well done everyone. Here is the email to SH -
Dear Shareholders,
As you know well by now, following my several newsletters on
the subject, we have been endeavouring since early 2017 to find a sustainable
way to continue the Grub Club business, whether by investment, strategic
partnership, merger, or sale to an acquiring purchaser.
Following positive discussions with our biggest global
competitor during the last few weeks of the year, I am now able to advise of
Grub Club's asset sale to VizEat late on Saturday 23 December 2017.
The structure of the deal is such that the Grub Club
business will effectively be absorbed into VizEat meaning, unfortunately, that
there will be no return on Grub Club shares, whether for Founders or Investors
alike.
On behalf of the leadership team, I would like to thank you
for your contribution to making Grub Club the 'stand out' dining experience in
London, resulting in:
· 100's
of thousands of pounds being raised for charities, such as the Hands Up
Foundation for Syria, Food Cycle and The Food Chain, to name but three out of
many more;
· Over
60,000 dining guests experiencing a completely new way to enjoy good food
whilst meeting like-mindedly sociable fellow guests;
· Dozens
of underused cafe's being able to supplement their normal income through
hosting evening dining events;
· 10
new permanent restaurants being established following the chef's experience
with Grub Club;
· 1
such restaurant achieving their ambition of being awarded a Michelin star of
excellence.
The sale to VizEat will allow the Grub Club team to continue
shaping the London Dining Out scene and further expand into other UK cities,
whilst also protecting current Grub Club suppliers and employees.
We will revert to all relevant shareholders latest by 31
March 2018 to advise on the possibility of claiming any EIS / SEIS loss
relief.
In the light of the above sale, I will be stepping down from
my role as Grub Club Executive Chairman & CEO on 30 December - thank you
for your support over the last 12 months of what has been a highly eventful
2017 for the business.
As the remaining Founder still active in the business, Sid
will now be your main point of contact for all future business communication.
Best,
Paul
Paul Heritage
Executive Chairman & CEO
Grub Club
"Creating
Extraordinary Dining Experiences in Curious Corners" or 'Creating a bloody a mess'
And here is article by Beauhurst on Crowdcube exits - https://about.beauhurst.com/blog/grub-club-acquisition-crowdfunding-exit/ - which has now been corrected due to our data. But you would have to say that it is incredible and worrying that a company like Beauhurst can accpt a Crowdcube PR and just stick it out there as if it were true. We accept that Crowdcube are happy putting out misinformation but we wouldnt expect Beauhurst to do the same on their behalf.
And here is article by Beauhurst on Crowdcube exits - https://about.beauhurst.com/blog/grub-club-acquisition-crowdfunding-exit/ - which has now been corrected due to our data. But you would have to say that it is incredible and worrying that a company like Beauhurst can accpt a Crowdcube PR and just stick it out there as if it were true. We accept that Crowdcube are happy putting out misinformation but we wouldnt expect Beauhurst to do the same on their behalf.
The Crowdcube site shows nothing interesting has happened at Grub Club for 2 years - typically out of date. Yet the website they have puts you through to a similar business owned by a totally seperate company, Vizeat. Grub Club was 'aquired' by Vizeat - well it is now run by them. It is unlikly any money changed hands.
Having dug around a little we failed to find any legal connection between Grubklub and Vizeat. Crowdcube shareholders still appear to own shares in Grubklub, which was at YE technically insolvent, with accumulated losses of over £800k and £27k in the bank.
We have asked Vizeat what happened but have had no reply yet. Vizeat has rebranded to Eatwith and guess what, the old founder of Grub Club, Siddarth VijayaKumar has been made the UK CEO. The other two founders have resigned. Is this good news for Crowdcube investors? Hard to say. Probably not as they do not own shares in Vizeat which now owns the Grub Club app.
In an interesting piece here Vizeat calls it an acquisition whilst Siddarth calls it a joining of forces. It cannot be both.
If any SHs in Grubklub have any interesting insights then please get in touch. It looks like another Crowdcube company that couldnt deliver and that has been picked off by a larger rival for pennies or nout - ring any bells? Success in Vizeat does not currently appear to mean success for SHs in Grubklub.
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