Monday, 24 August 2015
Front Up Retail administration drags on.
We have featured Front Up Retail here before. This company raised over £300k on Crowdcube in several tranches, then immediately went into administration, where it turned out Jon Allen, the founder, had done a pre packed deal with Lyle and Scott. This deal has left all shareholders and creditors with nothing but Allen with a full time job at L&S and payment of his business loan. The timings strongly suggest that the pre packed was an idea alive and kicking when Allen was allowed by Crowdcube to sell yet more equity - based as usual on totally fictitious projections.
That was a year ago on August 31. The administrators are still not done.
In their interim report, from April this year, they have revealed that they handed in a confidential report to the Secretary of State concerning this affair.
If there is any justice in the world, this report will highlight the timing of the final equity sale on Crowdcube and the pre packed deal. This should result in disqualification of the Director and may lead to further action from the shareholders. Caveat Emptor.