Gripit Fixings, a firm founded by the youngest entrepreneur to secure investment on hit BBC show Dragons’ Den is on the brink of insolvency.
The company’s owner, Jordan Daykin, was just 18 years old when he secured funding from Deborah Meaden on the show.
Gripit Fixings makes a product that is designed to fix heavy items to plasterboard, however, after a lot of initial success, the company has called in an insolvency practitioner.
The company’s shareholders, who stand to lose their entire investment, have been complaining about the situation on a forum on the crowdfunding platform Crowdcube, which Gripit Fixings has used to raise money for the firm.
Daykin patented his product in 2012 and came to prominence after he appeared on Dragons’ Den in 2014 and successfully secured an £80,000 investment for 25% of his company from Meaden. By the end of 2016, Gripit Fixings’ products were stocked in more than 3,000 UK outlets and exported to 32 countries.
The company’s downfall has been a quick one. At the start of the year, the company was valued at £22.5m, following a successful £4m funding round. However, during the summer Daykin left the business. Following several months of uncertainty, the company was valued at just £6m last month. Now, investors face losing their entire investment.
A statement from UK Building Property Pru read: “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 with the assistance of Steven Wiseglass, a director at corporate recovery and insolvency practice Inquesta.
The company is advising its suppliers that it is undertaking a full review and has asked for their support during this process. The board and management team of UK Building Products Ltd remain focused on guiding the company for the benefit of all stakeholders. It is anticipated that the restructuring process may take a number of months to complete and a further update will be issued in due course.”
Deborah Meaden said: “As an investor in UK Building Products Ltd, I am pleased that the board and management team have taken quick and responsible action to address the challenges facing the company.
“I am supporting and helping them as they work towards achieving the best-possible outcome for all stakeholders.”