Dragons' Den star's firm on brink of insolvency

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Jordan Daykin

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a company based by means of the youngest entrepreneur to stable funding on the BBC’s Dragons’ Den is getting ready to insolvency, the BBC has learnt.

Gripit Fixings makes a product designed to repair heavy devices to plasterboard. Its inventor, Jordan Daykin, was once simply 18 when he seemed on the programme.

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Dragons' Den famous person's agency on brink of insolvency

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alternatively, Mr Daykin left the corporate this summer and an insolvency practitioner has now been referred to as in.

The agency’s board suggested buyers it was in “a precarious place”.

Dragons' Den famous person's agency on brink of insolvency

indignant shareholders, who stand to lose their entire investment, had been reacting on a discussion board on the crowdfunding platform Crowdcube, which Gripit has used in the past to boost cash.

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Some complained that they had been misled about the firm’s strengths, others that Mr Daykin, who’s now 24, had disregarded requests for knowledge.

One talked about: “the corporate is on its knees and Jordan has left it with none cares. I asked him a well mannered query on LinkedIn about it this afternoon and he very unexpectedly blocked me and eliminated my remark.”

the ideas first emerged in an replace to shareholders from the board and administration staff, seen by way of the BBC, which used to be sent out closing week.

It got here after Gripit tried and did not raise £1m in new capital via issuing new shares to current buyers.

Gripit mentioned the funding spherical had been under-subscribed and was as soon as due to this reality being cancelled.

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Jordan Daykin secured funding from Dragons’ Den’s Deborah Meaden

Mr Daykin patented his product in 2012. He received here to prominence when he regarded on Dragons’ Den in 2014 and efficiently secured an £eighty,000 funding for 25% of his firm from one of the most convey’s stars, entrepreneur Deborah Meaden.

by the use of 2016, Gripit Fixings have been stocked in further than three,000 UK shops and exported to 32 international locations.

Gripit continues to be to be listed as an funding on Ms Meaden’s website, the location she describes Mr Daykin as anyone who “is aware of his product and its market inside of out”.

Ms Meaden proven to the BBC that she was once nonetheless an investor within the company.

She delivered: “i’m pleased that the board and management workforce have taken quick and accountable motion to handle the challenges coping with the corporate.

“i’ll give a boost to them in whatever good manner i’ll as they work against reaching the best possible end result for all stakeholders.”

Mr Daykin, who left the business four months in the past, said it used to be once “upsetting” to search out the corporate in this sort of precarious position.

He brought: “regardless of the mischaracterisation, all through my time as CEO I at all times took delight in my communications with all investors. as a result of stepping again, all investor communications had been handled internally.”

In January, the corporate was once valued at £22.5m and had raised some £4m from buyers. on the other hand, on the time of its closing fundraising round in September, it used to be valued at merely £6m.

Now its traders face the potential of losing all their cash.

“without a important money injection, the company just isn’t ready to proceed to change into the longer term or ship on its increase plans,” said the update from Gripit.

“To this finish, the board have secured the advice of the fitting insolvency practitioner and might learn about the corporate’s options within the coming days.”

alternatives incorporated a restructuring plan or a sale of the alternate.

“entertainment certain the administration crew and board will depart no stone unturned to secure a future for Gripit,” the commentary stated, including that the corporate would not be in a position to respond to questions for the next two to 3 weeks.

When contacted during the BBC, the agency, registered as UK building merchandise Ltd, issued a commentary pronouncing Steven Wineglass, a director at company restoration and insolvency take a look at Inquesta, was once providing assistance to it.

“as a result of numerous particular challenges, the corporate has identified the need to restructure and is examining the options available to it,” it talked about.

It stated the method would possibly take “moderately a couple of months to complete”.