The details surrounding the collapse of a peer-to-peer lending platform headquartered in Greater Manchester and how much it owed to creditors have been revealed for the first time.
Altrincham-based The House Crowd entered administration earlier this year with Frank Ofonagoro, Jeremy Woodside and Frank Wessely at business advisory firm Quantuma being appointed as joint administrators, with consent from the FCA.
Quantuma was also appointed to House Crowd Property Management, House Crowd Finance and House Crowd Finance (Security Agent).
According to the documents filed with Companies House, the administration process was started by The House Crowd's non-executive directors following concerns about its "viability and ability to continue to fund its operation".
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The business had also been subject to a voluntary requirement process since June 2020 after an application by the directors to the Financial Conduct Authority for non-compliance with various regulatory rules.
That process "adversely impacted" the company's ability to raise external debt to support its operations", the documents added.
Quantuma also said that the administration is an an early stage and is not able to comment on the estimated outcome for creditors.
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A total of nine of the company's 17 staff have been retained by the joint administrators to assist in the wind down of the business and its subsidiaries, making eight redundant.
The documents also show that the company owes creditors in the region of £100,000.
Founded in 2012 by Frazer Fearnhead and Suhail Nawaz, The House Crowd offered SME bridging loans secured against land or property.
The firm had about 3,700 active investors on the platform and funded more than 400 developments worth £123.9m.