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| Dragons' Den success story firm risks collapse | Dragons' Den success story firm risks collapse |
| (about 16 hours later) | |
| A firm founded by the youngest entrepreneur to secure investment on the BBC's Dragons' Den is on the brink of insolvency, the BBC has learnt. | A firm founded by the youngest entrepreneur to secure investment on the BBC's Dragons' Den is on the brink of insolvency, the BBC has learnt. |
| Gripit Fixings makes a product designed to fix heavy items to plasterboard. Its inventor, Jordan Daykin, was just 18 when he appeared on the programme. | Gripit Fixings makes a product designed to fix heavy items to plasterboard. Its inventor, Jordan Daykin, was just 18 when he appeared on the programme. |
| However, Mr Daykin left the company this summer and an insolvency practitioner has now been called in. | However, Mr Daykin left the company this summer and an insolvency practitioner has now been called in. |
| The firm's board told investors it was in "a precarious position". | The firm's board told investors it was in "a precarious position". |
| Angry shareholders, who stand to lose their entire investment, have been reacting on a forum on the crowdfunding platform Crowdcube, which Gripit has used in the past to raise money. | Angry shareholders, who stand to lose their entire investment, have been reacting on a forum on the crowdfunding platform Crowdcube, which Gripit has used in the past to raise money. |
| Some complained they had been misled about the company's strengths, others that Mr Daykin, who is now 24, had ignored requests for information. | Some complained they had been misled about the company's strengths, others that Mr Daykin, who is now 24, had ignored requests for information. |
| One said: "The company is on its knees and Jordan has left it without any cares. I asked him a polite question on LinkedIn about it this afternoon and he very swiftly blocked me and removed my comment." | One said: "The company is on its knees and Jordan has left it without any cares. I asked him a polite question on LinkedIn about it this afternoon and he very swiftly blocked me and removed my comment." |
| The news first emerged in an update to shareholders from the board and management team, seen by the BBC, which was sent out last week. | The news first emerged in an update to shareholders from the board and management team, seen by the BBC, which was sent out last week. |
| It came after Gripit tried and failed to raise £1m in new capital by issuing new shares to existing investors. | It came after Gripit tried and failed to raise £1m in new capital by issuing new shares to existing investors. |
| Gripit said the funding round had been under-subscribed and was therefore being cancelled. | Gripit said the funding round had been under-subscribed and was therefore being cancelled. |
| Mr Daykin patented his product in 2012. He came to prominence when he appeared on Dragons' Den in 2014 and successfully secured an £80,000 investment for 25% of his company from one of the show's stars, entrepreneur Deborah Meaden. | Mr Daykin patented his product in 2012. He came to prominence when he appeared on Dragons' Den in 2014 and successfully secured an £80,000 investment for 25% of his company from one of the show's stars, entrepreneur Deborah Meaden. |
| By 2016, Gripit Fixings were stocked in more than 3,000 UK outlets and exported to 32 countries. | By 2016, Gripit Fixings were stocked in more than 3,000 UK outlets and exported to 32 countries. |
| Gripit is still listed as an investment on Ms Meaden's website, where she describes Mr Daykin as someone who "knows his product and its market inside out". | Gripit is still listed as an investment on Ms Meaden's website, where she describes Mr Daykin as someone who "knows his product and its market inside out". |
| Ms Meaden confirmed to the BBC that she was still an investor in the company. | Ms Meaden confirmed to the BBC that she was still an investor in the company. |
| She added: "I am pleased that the board and management team have taken quick and responsible action to address the challenges facing the company. | She added: "I am pleased that the board and management team have taken quick and responsible action to address the challenges facing the company. |
| "I will support them in whatever practical way I can as they work towards achieving the best possible outcome for all stakeholders." | "I will support them in whatever practical way I can as they work towards achieving the best possible outcome for all stakeholders." |
| Mr Daykin, who left the business four months ago, said it was "upsetting" to find the company in such a precarious position. | Mr Daykin, who left the business four months ago, said it was "upsetting" to find the company in such a precarious position. |
| He added: "Despite the mischaracterisation, during my time as CEO I always took pride in my communications with all investors. Since stepping back, all investor communications have been handled internally." | He added: "Despite the mischaracterisation, during my time as CEO I always took pride in my communications with all investors. Since stepping back, all investor communications have been handled internally." |
| 'Will not respond to questions' | 'Will not respond to questions' |
| In January, the company was valued at £22.5m and had raised some £4m from investors. However, at the time of its last fundraising round in September, it was valued at just £6m. | In January, the company was valued at £22.5m and had raised some £4m from investors. However, at the time of its last fundraising round in September, it was valued at just £6m. |
| Now its investors face the prospect of losing all their money. | Now its investors face the prospect of losing all their money. |
| "Without a substantial cash injection, the company is not able to continue to trade into the future or deliver on its growth plans," said the update from Gripit. | "Without a substantial cash injection, the company is not able to continue to trade into the future or deliver on its growth plans," said the update from Gripit. |
| "To this end, the board have secured the advice of an appropriate insolvency practitioner and will examine the company's options in the coming days." | "To this end, the board have secured the advice of an appropriate insolvency practitioner and will examine the company's options in the coming days." |
| Options included a restructuring plan or a sale of the business. | Options included a restructuring plan or a sale of the business. |
| "Rest assured the management team and board will leave no stone unturned to secure a future for Gripit," the statement said, adding that the company would not be in a position to respond to questions for the next two to three weeks. | "Rest assured the management team and board will leave no stone unturned to secure a future for Gripit," the statement said, adding that the company would not be in a position to respond to questions for the next two to three weeks. |
| When contacted by the BBC, the firm, registered as UK Building Products Ltd, issued a statement saying Steven Wiseglass, a director at corporate recovery and insolvency practice Inquesta, was providing assistance to it. | |
| "As a result of a number of specific challenges, the company has identified the need to restructure and is examining the options available to it," it said. | "As a result of a number of specific challenges, the company has identified the need to restructure and is examining the options available to it," it said. |
| It said the process could take "a number of months to complete". | It said the process could take "a number of months to complete". |