Tuesday, 4 July 2017

Ethos Global finally liquidated with extreme prejudice.


Ex Crowdcubers Ethos Global have finally been closed down by Court Order. Not filing accounts for almost 2 years and setting up new companies instead, shouldnt and we hope, will not, pay. 


We have written about these guys a few times here - it's taken quite a while to see them finally closed. But as the new studio in London is still being operated by the same people but just under a new name, where is the justice in that? 

The Court Order is still being filed so we may have to wait a day or so to find out what will happen to 388 Crowdcube investors and £709k they invested - all via a Crowdcube nominee acount. Money that paid for the new London set up. You may have a good idea from our past stories how this one will end. 

However this one looks a little juicier, given the various company set ups and shenanigans that have taken place since the Crowdcube raise. Of course Crowdcube have no idea this has happened - their Ethos page still proclaims the success of the new public launch of their new London site last year. Which is now owned by Soma London England, which is in turn, owned by the same directors who took the £709k via Crowdcube and immediately closed down the Cambridge studio. Oddly in January this year, Ethos Global filed a raise of equity finance, but the filings revealed there was no money involved, just an issue of 30m free A shares.

The new business - SOMA - School of Mindbody Athletics (!) is due to launch in September this year according to their new website http://soma.house/. They continue to remind people that they are a couple of Cambridge graduates - clearly not in English or Marketing. We simply do not believe that they will be allowed to get away with this.

Soma website appears to be owned/operated by US based Mindbody which also has a connection to Soma Fitness based in California. At this stage we gave up.

The newco has apparently TM'd its SOMA  - fact is TM means nothing and Soma is already taken several times  - their version has no application or recorded registration. 

Makes you want to cry. Makes you really want to get hold of CC and ask them just what the fridge they think they are doing.

We have asked the company several times for a comment and will try again, but the only reply we got was a no comment. A recent email to the same PR person was auto sent back as he has seen the light and left.

'You bet ya big time' gargled Grey fish.

PS - We have still had no response from the company or CC. But people we have spoken to in Cambridge said that the Ethos studio there was always full  - which is surely a sign of a successful business. So why did the Cambridge studio close suddenly just after the CC raise and why is it still vacant? Likewise why start newco's after the CC raise and have them running the now (we assume) busy London studio??


8 comments:

  1. The Cambridge studio was forcibly closed by bailiffs after they failed to pay over 100k in rent

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  2. Ethos claim that Cambridge LL have breached their contract, but litigation ongoing. New company created to sever ties with Cambridge studio legal proceedings and get on with business. Investors being given equal shares in new company.

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    1. Ethos claim many things. Who are Cambridge LL?? Look, the way they have set this up is highly irregular verging on something far more serious. I know that CC had to persuade them to take CC SHs with them - they had no intention of doing so. What are 'equal shares'? Who says newco is valued same as old or has any value. Who says management will be free to operate it when this all ends up in court?

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    2. Cambridge LL = Cambridge Land Lords? Property owned M&G and the court case brought by Tower Hamlets Borough. Where does that fit in with your analysis??

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  3. Always being full is a sign of demand but not necessarily a sign of success. Business model probably flawed. Rent and studio fit-out probably too high.

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  4. Is there any update on this? I have been considering getting their unlimited monthly membership since they are offering it at a good rate. But news like this doesn't look too good. Do you think I can safely get in 3 months of working out before they end up in court?

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    1. No new news. Couldnt comment on the future!

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  5. They reckon landlord said they would be able to install showers and reneged so they stopped rent and then bailiffs came in. Buy lots of Apple equipment, everyone has left, investors calling reception staff asking what is going on

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