The administrator of the company behind the former Emoov hybrid agency has finished its work, revealing that the hundreds of unsecured creditors who were owed millions into the company will get less than 1p for every £1 owed.
These unsecured creditors, who include many of the crowdfunding investors and suppliers, were owed £14 million but will receive just £30,000 to share out among themselves.
This group also includes those who paid the old Emoov in advance to sell their homes, who were collectively owed £1.5 million, and £600,000 owed to employees.
The demise of Emoov Limited, which was one of the largest corporate failures in the history of the property industry, left behind a trial of financial destruction that has taken administrators from insolvency firm James Cowper Kreston two years to unpick.
But while many individuals and SME companies have been hit hard by the hybrid agency’s collapse, the biggest loser is tycoon Richard Desmond, whose company Northern & Shell was owed £2.5 million by Emoov Limited.
When Emoov went into administration, it owed unsecured creditors £14.6 million of which £3 million was investor cash raised through several crowdfunding efforts, trade creditors of £1.6 million with £350,000 owed to HMRC.
But although many industry commentators and investors in Emoov Ltd fumed at the level of losses and called on its directors to be investigated, the administrator has now said; following a review of the company’s accounts they did not identify any claims as a result of our investigations”.
The final administrators’ report shows that just £638,000 was left after the company’s affairs were disentangled.
Last year the Emoov website and brand name was bought by Mashroom Ltd and relaunched.