Food & Beverage Companies Going Bust

[DownwardSpiral]

It isn't news that food and drinks companies are - and have been - going bust of late but thought I'd kickstart a thread with an example by way of Square Root London Limited.

• The Gazette reliably informs us that Square Root London Limited has appointed administrators in the run up to the end of September 2024.
• Square Root makes - or rather made - sodas, sugary shandy and other diabetes-inducing drinks out of their base in East London.
• Has been around for 10 years so obviously was "the next big indy soda" at one point but fads come and go.
• A look at the accounts (as at February 2023) on Companies House shows a company chasing its former fleeting glory - nearly £1 million owed to Creditors within a year is a headline | https://find-and-update.company-information.service.gov.uk/company/08784537/filing-history.
• A very basic search on Google throws up a crowdfunding completed in November 2022 where the company raised £300,000 whilst stating a valuation of £7.5 million with £1 million turnover | https://europe.republic.com/square-root-soda1
• Quite ridiculous that people put money into this as to be fair to the two owners (who took this company from their kitchen to "what it is today") they were upfront about their debts "the company has £556,175 of outstanding loans" and even itemised them (probably a necessary condition for crowdfunding on the site).
• They also state during the crowdfunding: "We're planning a US launch for 2024". Umm, why? You haven't got it sorted here. Employed an average of 16 people per year. Just trying to grow bigger than what it could really ever be and as a result the whole thing has collapsed.
• Bounce back loan repayments also look to have played a part here.

https://www.squarerootsoda.com/pages/fizzy-pop-shop

[spygirl]

Hipster pop company runs up 500k of debt making pop .....

[Frank Hovis]

6 hours ago, DownwardSpiral said:

very basic search on Google throws up a crowdfunding completed in November 2022 where the company raised £300,000 whilst stating a valuation of £7.5 million with £1 million turnover

 

Crowdfunding appears to be the stomping ground of idiots.

[Pip321]

1 hour ago, Frank Hovis said:

 

Crowdfunding appears to be the stomping ground of idiots.

Sounds good…do I get a badge, where do I sign up?

ps…£500k, don’t want to derail but debt is real with consequences and I think this case illustrates the point. An individual with a desire to pick some curtains, coffee table and no idea about construction is able to borrow vast amounts of money in a BTL ‘business’. I remember on 118 property some landlords moaning about Sec 24 (change to interest on tax calculation) and then me realising they were paying £60k a month on 1% interest only loans. 🤢

Debt is becoming a reality for these (as Spygirl said) zombie hipster businesses. (Oh, and BTL😉)

Edited Tuesday at 08:21 by Pip321

[Frank Hovis]

3 minutes ago, Pip321 said:

Sounds good…do I get a badge, where do I sign up?

ps…£500k, don’t want to derail but debt is real with consequences and I think this case illustrates the point. An individual with a desire to pick some curtains, coffee table and no idea about construction is able to borrow vast amounts of money in a BTL ‘business’. I remember on 118 property some landlords moaning about Sec 24 (change to interest on tax calculation) and then me realising they were paying £60k a month on 1% interest only loans. 🤢

Debt is becoming a reality for these (as Spygirl said) zombie hipster businesses. (Oh, and BTL😉)

 

Yes, financial illiterates who thought that 1% interest rates were the new normal are tumbling like new mown hay at present.

[Axeman123]

4 hours ago, spygirl said:

Hipster pop company runs up 500k of debt making pop .....

I bet the founders had a good run of salary and perks while it lasted though (just like a small cap PM miner)

[DownwardSpiral]

2 hours ago, Axeman123 said:

I bet the founders had a good run of salary and perks while it lasted though (just like a small cap PM miner)

No doubt! There are worse things to have spent your last ten years doing.

Edited Tuesday at 13:24 by DownwardSpiral

[DownwardSpiral]

A few more administrations in this sector in recent weeks:

1. Ancestrel Wines Ltd (St Albans) "Import, wholesale & retail of natural & artisanal wine"| Limped on as a going concern for a year or two by the fact that they had plenty of stock. Unwisely using bank overdraft (high %), bank loans and other creditors really kicked in after May 2024.

2. London Cocktail Bars Limited | 60 employees in 2023. Decent dividends paid in 2021 but all dried up by 2023 replaced with huge debts in the region of £1.5million (due within one year).

3. The White Hart at Uttoxeter Limited |£2.1 million owed to creditors falling due within a year of 31 March 2023 (£1 million VAT and other tax) against assets of approx £1.2 million (mostly land and property as expected for a hotel and restaurant).

Very tough out there. Arts and entertainment businesses really seem to be failing in large numbers (the administrations list is packed with them along with construction and supplies) at the moment but food & drink seems to be following.

[DownwardSpiral]

A bit of a crossover between drinks and so-called "entertainment". A business (locations in Shoreditch, Edinburgh and Cardiff) called Ballie Ballerson which offers alcoholic drinks and pizza in an "adult playground" - literally...ball pits (fucking germ and pizza grease pits) and slides. The books show that this is a total disaster of a business with eyewatering debt. In fairness, it looks like it had its ballies handed to it on a plate through Covid.

Administration! NatWest and Metro Bank wants its money back (or whoever's money it is)!

https://ballieballerson.com/brand/about-us/

Edited Tuesday at 15:47 by DownwardSpiral

[Hail the Tripod]

43 minutes ago, DownwardSpiral said:

A bit of a crossover between drinks and so-called "entertainment". A business (locations in Shoreditch, Edinburgh and Cardiff) called Ballie Ballerson which offers alcoholic drinks and pizza in an "adult playground" - literally...ball pits (fucking germ and pizza grease pits) and slides. The books show that this is a total disaster of a business with eyewatering debt. In fairness, it looks like it had its ballies handed to it on a plate through Covid.

Administration! NatWest and Metro Bank wants its money back (or whoever's money it is)!

https://ballieballerson.com/brand/about-us/

The empty global corporate monoculture wankers that I work with will be gutted. Exactly the sort of place they get “super-excited” about. 

[Ash4781b]

Is this like a scaled up soda stream? Thought most things were made in those massive brivtic plants across the uk

Edited Tuesday at 17:21 by Ash4781b

[spunko]

4 hours ago, DownwardSpiral said:

A bit of a crossover between drinks and so-called "entertainment". A business (locations in Shoreditch, Edinburgh and Cardiff) called Ballie Ballerson which offers alcoholic drinks and pizza in an "adult playground" - literally...ball pits (fucking germ and pizza grease pits) and slides. The books show that this is a total disaster of a business with eyewatering debt. In fairness, it looks like it had its ballies handed to it on a plate through Covid.

Administration! NatWest and Metro Bank wants its money back (or whoever's money it is)!

https://ballieballerson.com/brand/about-us/

Ball pits are notorious for being bacteria-rich, anyone remember the McDonalds ball pits? I went to a few birthday parties there during primary school and they were probably revolting though when you're a kid you don't really care.

[Van Lady]

5 minutes ago, spunko said:

Ball pits are notorious for being bacteria-rich, anyone remember the McDonalds ball pits? I went to a few birthday parties there during primary school and they were probably revolting though when you're a kid you don't really care.

Look on the bright side, my opinion, it maybe helped to build your immune system.

I have an acquaintance aged about 50 who is always ill. Every month or so visits doctor and waiting for referrals.

Plenty of energy though to ocd, my opinion, daily clean home.

My opinion is don’t be too clean apart from kitchen and toilet hygiene. Dust etc. not a problem.

I like a cleanish home but not too fussy. Don’t remove my outdoor footwear at home plus I have a dog who gets all sorts on her paws etc.

Also have an acquaintance, around my age, who has had two kids with various allergies. Sterilised everything her kids ate for 2 or 3 years.

My opinion is that good immunity is created by not being too clean but food/toilet hygiene is a must. Everything else is a lottery. Just don’t worry about germs is my general approach in life.

[M S E Refugee]

23 minutes ago, Van Lady said:

Look on the bright side, my opinion, it maybe helped to build your immune system.

I have an acquaintance aged about 50 who is always ill. Every month or so visits doctor and waiting for referrals.

Plenty of energy though to ocd, my opinion, daily clean home.

My opinion is don’t be too clean apart from kitchen and toilet hygiene. Dust etc. not a problem.

I like a cleanish home but not too fussy. Don’t remove my outdoor footwear at home plus I have a dog who gets all sorts on her paws etc.

Also have an acquaintance, around my age, who has had two kids with various allergies. Sterilised everything her kids ate for 2 or 3 years.

My opinion is that good immunity is created by not being too clean but food/toilet hygiene is a must. Everything else is a lottery. Just don’t worry about germs is my general approach in life.

https://www.bbc.co.uk/news/world-middle-east-63389045

He didn't wash for 50 years then some do-gooders washed him and he died soon after.

[Castlevania]

5 hours ago, DownwardSpiral said:

A bit of a crossover between drinks and so-called "entertainment". A business (locations in Shoreditch, Edinburgh and Cardiff) called Ballie Ballerson which offers alcoholic drinks and pizza in an "adult playground" - literally...ball pits (fucking germ and pizza grease pits) and slides. The books show that this is a total disaster of a business with eyewatering debt. In fairness, it looks like it had its ballies handed to it on a plate through Covid.

Administration! NatWest and Metro Bank wants its money back (or whoever's money it is)!

https://ballieballerson.com/brand/about-us/

That sounds amazing. 

[Wight Flight]

13 minutes ago, Castlevania said:

That sounds amazing. 

Sounds like a gropers paradise.

Chuck in some twister mats and,every perv in town will head there.

[apples]

12 hours ago, spunko said:

Ball pits are notorious for being bacteria-rich, anyone remember the McDonalds ball pits? I went to a few birthday parties there during primary school and they were probably revolting though when you're a kid you don't really care.

But they say they clean them once a week, and you can sanitize your hands to "kill any germs"!

https://help.ballieballerson.com/en/articles/7183681-do-you-clean-your-balls

Quote

We have a ball cleaner called Gobble Muffin (yes, that's its real name) who sanitises and cleans 18,000 balls p/hr. [5 a second]

Our balls get a lovely clean each and every week we’ve got the test results to prove it! Of course, we’ve also got hand sanitisers scattered around the venue to kill any germs.

Our soap dispensers are always stocked and we’ve got brand spanking new air con to keep cool fresh air flowing through the venues so they’re always at the optimum temperature.

Look, technology! (via https://ballieballerson.com/london/ball-pit/, has a video to "watch Gobblemuffin in action" but I'm not dirtying myself going to Instagram)

Edited Wednesday at 08:34 by apples

[Red Debt Redemption]

17 hours ago, Van Lady said:

Look on the bright side, my opinion, it maybe helped to build your immune system.

I have an acquaintance aged about 50 who is always ill. Every month or so visits doctor and waiting for referrals.

Plenty of energy though to ocd, my opinion, daily clean home.

My opinion is don’t be too clean apart from kitchen and toilet hygiene. Dust etc. not a problem.

I like a cleanish home but not too fussy. Don’t remove my outdoor footwear at home plus I have a dog who gets all sorts on her paws etc.

Also have an acquaintance, around my age, who has had two kids with various allergies. Sterilised everything her kids ate for 2 or 3 years.

My opinion is that good immunity is created by not being too clean but food/toilet hygiene is a must. Everything else is a lottery. Just don’t worry about germs is my general approach in life.

Used to eat other kids crisps dropped on the grass when I first started school. I thought it was great I could try all the flavours and kinds, skips, hula hoops, salt and vinegar sticks, bacon and brown sauce all for free. The teacher didn't think it was great saying don't do that and screwing up her face.

One of those memories that's etched into my brain will never forget and don't know why. 

[working woman]

6 hours ago, Red Debt Redemption said:

Used to eat other kids crisps dropped on the grass when I first started school.

You must have gone to a posh school

No chance of that happening at my primary school. We were all very careful to make sure we never dropped anything, ever.  If we did, we usually stamped on the crisp to smash it into 100's of small pieces. Got to have maximum fun for the money you spent.