Tuesday, 2 June 2015
Jon Allen is simply a conman
This shows clearly why it may never be possible for the crowd to have information symmetry in order to make a sensible informed investment decision.
Back in 2012 Jon Allen successfully pitched for investment on Crowdcube for his company Front Up Rugby. Crowdcube named him 2012 Entrepreneur of the Year.
Having failed miserably to get close to his sales figures he was back again in 2013 and was again successful - promising the earth on the back of the 2015 Rugby WC. Unbeknownst to investors, Allen had been preparing a pre packed deal with Lyle and Scott. This entailed L&C picking up all of the company's assets, listed at £300k, for £20k and giving Jon a FT job running this new L&C brand. And finally they paid off his business loan. All apparently legal.
Investors had put in around £400k and the company had o/s debts taking the balance owed over £500k. They were all simply jettisoned.
If you now google this episode it appears that L&C bought Front Up Rugby as part of a grand expansion plan - Front Up being some success. Allen's own Linkedin page applauds his many business attributes and his building from scratch and then sale, of his highly successful Rugby shirt empire. No mention of admistrators, shady deals and burned creditors.
Coming to this story now, only 18 months on, it would be very hard to get at the real truth. That Allen set up this whole charade, lied to investors on more than one occasion and was clearly able to very easily hoodwink Crowdcube. He is simply a conman but our guess is he will appear again on crowdfunding sites once L&C have had enough of him.