Mon, 15 May 2017 | ADMINISTRATION
Cycling clothing retailer Vulpine Performance is heading for administration, with the appointment of RSM anticipated.
Vulpine was established by former film maker Nick Hussey in 2010, with the aim of creating a brand for casual cyclists. It raised over £1 million on crowdfunding platform Crowdcube in October 2015, and collaborated with Olympic gold medallist Sir Chris Hoy.
Troubles were brewing when Mr Hussey spent large sums of cash on marketing, with the company tending to purchase stock in bulk then resorting to discount it heavily to sell it, damaging the brand’s appeal to consumers. Late deliveries from Chinese factories was a further issue.
Further money raising efforts saw Vulpine use the cash too quickly, and it missed its sales targets. Last month it attempted to raise another £750,000, at a £7.5 million valuation, but was unsuccessful, and called in the administrators.
One of its funders, Simon Hulme, an investor in start-ups said: “Vulpine had failed abysmally to deliver what it had promised investors in the first round. To me, crowdfunding looks like a ticking timebomb.”
There are concerns, now, that around 600 shareholders are at risk of losing their investment.
Hussey said in a statement to shareholders the latest crowdfunding effort had been abandoned to seek a buyer. Saying: “Whilst there was strong recognition of the brand, and initial verbal interest, none have produced offers or ongoing due diligence, and communication has stopped. It is highly possible that, having seen our precarious financial position and the complications of doing a fast enough deal, they are waiting to pick the business up in administration instead, if any deal is to be done."
Businesses in adminstration
Subscribe to Business Sale Report
Long established with strong brand identity. High Levels of repeat business. Continually expanding customer base. Offers invited.
Very High profile customer base. Framework agreement with world's leading elevator manufacturer. Outstanding track record . Exciting expansion opportunity. Offers invited.
For Further Information: All enquires including requests for a non-disclosure agreement (NDA), should be directed to the below together with Your Name, Registered Company Name and Contact Number: Unconditional offers together with proof of funds to b...
|
19
|
|
Jan
|
Luxury lodging group enters administration | ADMINISTRATION
An Essex-based company which operates eight luxury lodge par...
|
17
|
|
Jan
|
Fine paper business enters administration | ADMINISTRATION
Arjowiggins UK, which operates a number of trading companies...
|
15
|
|
Jan
|
Hawk Plant enters administration | ADMINISTRATION
The Shropshire company, that has previously undertaken landm...
Sign up to receive our acquisition alert emails to get your FREE guide
|
22
|
|
Nov
|
Bristol care home enters administration | ADMINISTRATION
Owner of Woodlands Manor Care Home, Driskal Limited has fall...
|
10
|
|
Sep
|
Health company acquires mint and gum maker | BUSINESS SALE
Newcastle-under-Lyme-headquartered health group Health Made ...
|
14
|
|
Feb
|
Bankrupt group puts four hotels up for sale | COMMERCIAL PROPERTY
Four hotels in the South West of England have been put up fo...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources