Only a few days ago we wrote about Little Brew - we now have confirmation that the company has ceased trading although it has not yet technically closed.
This collapse happened back in March this year and one has to wonder if Crowdcube knew about it? If they did then where was the announcement? There wasnt one - just the usual PRing about how great they are.Was this failure included in their summer £8m funding prospectus? If not surely that is contrary to FCA regulations?
Simply put, this business never stood a chance; like so many that fund on Crowdcube. The founder admits as much by telling shareholders the model didnt work. No doubt it was not for effort or diligence - it was just not well enough funded and could never gain any traction in an overcrowded niche market. He couldnt make a living out of it and so had no choice but to cease operations. What will follow will eventually be a final striking off by CH - the first gazette is already actioned. In the end Little Brew did less than the name suggests.
How many times do we need to see this happen before the FCA takes some action? Its now two Crowdcube closures this month already and we expect many more.
Our thanks go to the shaerholder who provided this information.