Vulpine, the cycle clothing company, is insolvent and has gone into administration. The company's assets, including its brand and stock, are likely to be bought by trade investors. The company continues to run and take orders while controlled by the administrators.
Vulpine raised £1 million in less than two weeks on the Crowdcube crowdfunding website in late 2015. When funds ran low they returned to Crowdcube investors to raise further funds but had to pull the offering after negative commentary from those who invested in 2015.
Nick Hussey, Vulpine's founder, wrote to investors today, saying: "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."
Vulpine was founded by Nick Hussey in 2012 with the aim of selling cycle clothing that looked as good in the pub or in the office as on the bike but also had the technical performance and cut that cyclists require. The business grew rapidly and even launched a collection with Sir Chris Hoy but the company struggled to make profits, according to accounts filed at Companies House.
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