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Cycle clothing brand Vulpine is "insolvent" and enters administration

Founder Nick Hussey breaks the news "with intense sadness" in email to investors...

London-based cycle clothing brand Vulpine has entered administration. The news was confirmed in an email send this afternoon by its founder, Nick Hussey, to investors in the business.

He wrote:

It is with intense sadness that I have to inform you that Vulpine is insolvent, and I have had to take the extremely difficult but essential decision to place the company I founded into administration, under UK law, hence my unusual formality.

Two Partners from RSM Restructuring Advisory LLP will be appointed administrators next week, after a special resolution was passed yesterday by ‘A Shareholders’, who are able to vote. Once appointed the Administrators will have full control of the company and I will no longer be able to make any decisions.

We have done all we can to finance the company. The late arrival of the majority of our Spring Summer 2017 stock put us in a more difficult cash position. Thus we sought to raise investment again through crowdfunding. But this did not gain the necessary momentum to complete, likely due to the very poor trading figures of the last financial year.

Thus we pulled out of the Crowdcube attempted raise and began contacting previously interested investors and potential buyers of Vulpine, plus a raft of new contacts.

Whilst there was strong recognition of the brand, and initial verbal interest, none have produced offers or ongoing due diligence, and communication has stopped. It is highly possible that, having seen our precarious financial position and the complications of doing a fast enough deal, they are waiting to pick the business up in administration instead, if any deal is to be done.

Vulpine’s brand and business structure remains relatively undamaged at this point, and any acquisition via administration would see the highest potential value to all stakeholders if conducted as quickly as possible.

The proposed Administrators plan is to try to sell the company’s assets, such as brand, goodwill, database & website to maximize realisations for the benefit of creditors and potentially shareholders.

You can contact Robert Young at RSM for advice on this process, or if you believe there may be an interested buyer: robert.young [at] rsmuk.comI cannot offer financial advice, and I encourage you to seek your own, but if you qualify for EIS status, you should be able to claim significant Loss Relief on top of your Tax Relief.I wish you all the very best.

Ride well.

More to follow.

Simon joined as news editor in 2009 and is now the site’s community editor, acting as a link between the team producing the content and our readers. A law and languages graduate, published translator and former retail analyst, he has reported on issues as diverse as cycling-related court cases, anti-doping investigations, the latest developments in the bike industry and the sport’s biggest races. Now back in London full-time after 15 years living in Oxford and Cambridge, he loves cycling along the Thames but misses having his former riding buddy, Elodie the miniature schnauzer, in the basket in front of him.

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