One Dragon's Den Investment Goes Into Administration

PasturesNew

BBC Dragons Theo Paphitis and Deborah Meaden face losses after green haulier goes into administration

The pair invested £100,000 for a 40pc stake in the Oldham firm, which ran its fleet of nine Volvo trucks on bio-diesel, after directors Jerry Mantalvanos and Paul Merker appeared on the Dragons' Den show in 2007.

It is understood that they invested a further £27,500 in September "at short notice" after receiving calls from the directors the company, billed on the series as "the UK's first 100pc eco friendly haulage company".

Tenon Recovery, the administrator, said in a statement that it was looking to sell the business and was in discussions with "a number of interested parties".

Jeremy Woodside, director at Tenon Recovery, said: "The UK's current economic situation has adversely impacted on the haulage sector and with a recent move to new premises also creating challenges, the directors of JPM Eco Logistics Limited have found themselves unable to sustain the company's progress.

"We are in talks with a number of interested parties, with a view to selling the business, and are hopeful of a positive outcome."

It is understood that the company had failed to pay its biofuel supplier, MPB Bioproducts, which had first issued a winding-up petition shortly before Christmas.

http://www.telegraph.co.uk/finance/newsbysector/energy/4289968/BBC-Dragons-Theo-Paphitis-and-Deborah-Meaden-face-losses-after-green-haulier-goes-into-administration.html

Snooze

Having been involved in haulage for much of my working life I still can't get over who stupid they both were to invest in the company in the first place. Anyone that's got any knowledge of the haulage industry will know that's it probably one of the most cut throat industry's out there with very very small margins (unless you're in a specialised sector like abnormal loads).

Companies are aren't interested in what the trucks run on, they just want their !!!!!! moving from A to B as fast as possible and at the lowest possible cost and this is why investment was a bad idea because the company model was doomed to fail right from the start.

Rob

Really2

Snooze wrote: »

Anyone that's got any knowledge of the haulage industry will know that's it probably one of the most cut throat industry's out there with very very small margins .

Good job you have never been in IT.;) :eek:

Lotus-eater

When I saw the program I did think it was a good idea at the time. A gimmick that might work, they had a couple of big companies very interested in using them I believe, that wanted some good green PR presumably.
But I could see how vunerable they were, one big operator doing the same gimmick and undercutting them and they would be gone.

Also in the good times, having slightly higher transport costs to have good green credentials aren't too bad, in a downturn.....

wywywywy

What is a "winding-up petition"?

Thrugelmir

PasturesNew wrote: »

http://www.telegraph.co.uk/finance/newsbysector/energy/4289968/BBC-Dragons-Theo-Paphitis-and-Deborah-Meaden-face-losses-after-green-haulier-goes-into-administration.html

This demonstrates the reward and risk of being a dragon investor. I'm sure that the loss incurred in this business is more than offset by the other investments they have made.

Radiantsoul

wywywywy wrote: »

What is a "winding-up petition"?

First stage in liquidation.

Any

wywywywy wrote: »

What is a "winding-up petition"?

When you are overdue to pay your suppliers they can apply for "winding up petition", which is basicaly to put you into liquidation because they believe that you cannot carry on with business any longer.

wywywywy

Ok understood now. Thanks!

Conrad

The ethos of this site is money saving and it's common to see posts bemoaning prices.

So they want;
Pension pot to rise (therefore company profits, thus shares to rise to enable this).
Tesco to sell at lowest cost
Sustainable future.
No sweat shop suppliers.

People are so odd

Bambywamby

No, not odd, most people are idealists. But as we know, idealism is a far away from realism.