Aspiring Fintech Loot has shuttered its doors and gone into administration. According to a statement posted on their website, Loot has hired Henry Anthony Shinners and Adam Henry Stephens of Smith & Williamson LLP to handle the dissolution.
The Royal Bank of Scotland (RBS) was an investor in Loot, having purchased a 25% stake in the company for £5 million to help launch a digital bank. According to reports, once RBS took a look at the books, the bank turned away from providing further funding.
Seedrs, as well as potential investors, apparently dodged a bullet with the pre-crowdfunding page now digital dust.
The letter addressing users is republished below:
Loot Financial Services Limited (In Administration) (“the Company”)
It is with regret that we are informing you that Henry Anthony Shinners and Adam Henry Stephens of Smith & Williamson LLP, 25 Moorgate, London, EC2R 6AY were appointed as joint administrators of the Company on 22 May 2019. Your e-money is protected and held by Wirecard Card Solutions Limited at a regulated credit institution. Your funds will not be used by Loot or Wirecard Card Solutions Limited for any other purpose. You are still able to continue to use the account as normal. We are working with the administrators and we will announce further updates here in due course. In the meantime, if you have any questions please email us at firstname.lastname@example.org
Wirecard Card Solutions Limited
The affairs, business and property of the Company are being managed by the administrators Henry Anthony Shinners and Adam Henry Stephens who act as agents of the Company and without personal liability. Henry Anthony Shinners and Adam Henry Stephens are licensed as insolvency practitioners in the UK by the Institute of Chartered Accountants in England and Wales. As such they are bound by the Insolvency Code of Ethics when carrying out all professional work relating to an insolvency appointment.
The demise of Loot is a note of caution. Even with significant backing from a global bank like RBS, the startup collapsed and the bank was not willing to pick up the pieces. Just having a prominent lead investor is never a guarantee of product or service success.
— Loot (@LootApp) April 10, 2019
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