Rushmore results give little clue as to what they are up to.

The Rushmore Group was suppose to run a chain of night clubs. Seven years after taking £2m of Crowdcube investors we are still waiting.

We have written about them here.

Their latest accounts just filed, show all of their assets sitting as debtors - most of this figure being amounts owed by group undertakings. Over £2m is accounted for here.

Of course if Group undertakings dont repay this debt, then the money is gone as is the company. 

We couldnt find any group undertakings and like the night clubs it all seems a bit of a mystery. 

Rushmore Veryslow with accounts

The Rushmore Group raised a total of £2m on Crowdcube back in the day - or 2011 to 2013. Very little in their three Crowdcube campaigns has materialised.

As we all know the tortoise beats the hare but in this instance the poor old boy is more likely to meet his natural end before we see any progress. For once this is quite an interesting story which we have posted here 

As of today the company still operates just the one London and just the one New York venues. That was not the plan sold. Losses to YE Dec15, were £1.6m. Nor was that.

Hopefully the old guy is just about to appear round the bend with the 2016 accounts - no hurry.

So what did happen to the Rushmore Group and £1.5m raised on Crowdcube

Its funny how the same people continue to crop up in the ECf world.

The Rushmore Group funded via Crowdcube in 2011/12/13. Its owned by John Downey.

They raised what was then a record £1m on the platform, followed by another £500k. They promised to use the money to open a new establishment in Soho, which would replace the burnt out East Room club, bringing the Group back into profit. The club in Soho was the Century club, named for its steps leading up from Shaftesbury Avenue.

Since then, John Downey's plans have gone a little bit off track.

Sure the Century club is up and running but not with the Rushmore Group - who now only have 2 London clubs. They closed Giant Robot Clerkenwell last year.  Accounts filed for YE Dec 2014 show continued losses, now accumulated to £1.75m.

Apparently the Group is suing the  former MD of The Century Club for £6m as the deal, agreed according to the Crowdcube out to lunch department, fell through. He seems to think he will get the £6m.

According to this article http://www.morningadvertiser.co.uk/Operators/Other-operators/Rushmore-Group-secures-further-funding the Group were due to open 3 new members clubs in 2014. They didnt manage one.

So what has John Downey been up to?

It would seem that he has got bored of Rushmore and its 300 investors and is now full time with a new project, London Union. You could say that the Rushmore experience has taught him a few things. He is now raising £3m for his new project on Seedrs, another ECf platform. The pitch closes today, over its threshold figure of £1m and with 102 investors. We assume not many of them from the Rushmore experience.

Interestingly none of this is mentioned in the Seedrs pitch. In fact the bio for Downey doesnt ever mention Rushmore, only referring to one of its two remaining clubs.

This is not untypical of the outcomes that have befallen businesses funded via Crowdcube in 2012/13 and we can assume it will continue to be so. Investors have no control over either business or the management - they do as they please. Mind the wreck on your way out.