jcm9000
Member of DD Central
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Post by jcm9000 on Sept 27, 2016 16:49:01 GMT
Oh well, guess that is this E heading down the pan - well a creditors meeting has been called at least with their company site stating closed for company wide stock take. I think another P2P site has loans to them that I guess will be secured. No real surprise if I am honest although the last financials looked ok except for the growth in liabilities....
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kt
Posts: 105 
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Post by kt on Sept 27, 2016 17:33:57 GMT
Judging by the current gradings, anything marked as an E must be a very risky bet indeed.
What did they company trade in and how much was the loan for?
KT
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Post by GSV3MIaC on Sept 27, 2016 18:22:24 GMT
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kt
Posts: 105
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Post by kt on Sept 27, 2016 19:07:43 GMT
"We will unfortunately be closing our website and stores from 14/9/16 until 18/9/16 due to stock taking.
Sorry for the inconvenience."
Doesn't look like that stock take took the 4 days they thought it would. I can not buy anything from their site.
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jcm9000
Member of DD Central
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Post by jcm9000 on Sept 27, 2016 19:45:24 GMT
Seems a bit of a sad case, lady that set it up died and her husband and a staff member i suppose kept it going. I saw one store shut recently, assumed they were reigning things back in after over expabsion, esp as credit rating seemingly was improving earlier this year. Decent enough turnover and profits for an E (i gambled on This with a minimum stake as figured it might be from the death of the founder) but guess cash flow got them. TC has a few charges in place according to cos house so guess they get first dibs if this is the end.
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pip
Posts: 542
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Post by pip on Oct 2, 2016 10:32:05 GMT
It's a shame for both the owners,employees and those who lent this company money! The branding of the company was great, the stores fun and well suited to their target market (rich parents). Shows how tough it is to make money in this sector, I'm sure the rental costs were pretty enormous in their locations too. Not holding out much hope of any recoveries on this one.
Some defaults you feel like you have been shafted by some backhand money movements, but with this one I think it's a pretty sad tale.
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pip
Posts: 542
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Post by pip on Oct 14, 2016 12:08:38 GMT
Well and truly down the pan. Into liquidation and guarantor is bankrupt.
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blender
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Post by blender on Oct 14, 2016 12:23:20 GMT
Very difficult - you can see why a director/guarantor would rather put everything they had into such a business, because of belief in it and commitments to others, rather than hold onto their personal cash for the possible benefits of FC lenders. There's really no security or quasi-security at all. Very different from those who might borrower a large sum, make one repayment and then suddenly find they had gone bust - which seems to be happening.
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Post by thetreasurer on Oct 27, 2016 10:55:14 GMT
Now showing in my account as Bad Debt... That's £100 down the drain.
Considering selling all my unsecured positions in FC. That is two defaults in 4 months...
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blender
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Post by blender on Oct 27, 2016 11:18:45 GMT
Now showing in my account as Bad Debt... That's £100 down the drain. Considering selling all my unsecured positions in FC. That is two defaults in 4 months... Many lenders have a rule to dispose of any loan which comes back from being late on a payment. Some lenders also sell their loans after 6 months - or some variation which relates to risk band. Some defaults can be avoided that way, but there must be defaults, losses and some recoveries on the SME loans. Without losses the interest rates would be nearer to savings rates.
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nick
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Post by nick on Oct 29, 2016 12:36:54 GMT
Now showing in my account as Bad Debt... That's £100 down the drain. Considering selling all my unsecured positions in FC. That is two defaults in 4 months... Many lenders have a rule to dispose of any loan which comes back from being late on a payment. Some lenders also sell their loans after 6 months - or some variation which relates to risk band. Some defaults can be avoided that way, but there must be defaults, losses and some recoveries on the SME loans. Without losses the interest rates would be nearer to savings rates. Agreed - defaults and losses should be always be expected and are all part and parcel of any lending. The key is trying to minimising the rate of default and/or the variability in loss rate. Some strategies like the one mention above may reduce the likeliness of defaults, but the best thing anyone can do to minimise the risk of blow out losses on a portfolio of loans is to diversify as much as possible (I would suggest a minimum of 100 loans).
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bigfoot12
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Post by bigfoot12 on Mar 9, 2018 10:13:49 GMT
This is very strange. I passed the Islington shop yesterday and it is still empty. Shops round there normally re-let within a few month and this has been 18 months.
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